Microsoft's Allegation: Google's Covert Tactics to Undermine Cloud Business
ICARO Media Group
### Microsoft Accuses Google of Shadow Campaigns Against Its Cloud Business
In a bold move, Microsoft has publicly accused Google of engaging in covert activities to undermine its cloud services. The accusation, detailed in a blog post by Microsoft's deputy general counsel Rima Alaily, alleges that Google is behind a new "astroturf" group aimed at discrediting Microsoft. "The group is set to launch this week and is designed to mislead authorities, policymakers, and the public about Microsoft," Alaily stated.
According to Alaily, Google has gone to considerable lengths to mask its involvement by enlisting a few European cloud providers to front the organization. "When the group announces its formation, Google will likely act as though it is only a minor member rather than the driving force," Alaily added. The alleged creation of this new lobbying group follows an antitrust complaint that Google lodged with EU regulators in September. Google had accused Microsoft of engaging in unfair licensing practices for its Azure cloud services following Microsoft's settlement with an industry coalition of European cloud providers.
Microsoft claims it was alerted to Google's alleged intentions by a European cloud provider who declined to join the group. This company informed Microsoft that the organization would be heavily funded and directed by Google with the explicit aim of attacking Microsoft's cloud business in the EU and UK. Alaily revealed, "Google offered CISPE members a whopping $500 million in cash and credits to reject a settlement with Microsoft and continue litigation."
In response, Google has been vocal about its issues with Microsoft's cloud licensing rules for Windows Server. Google spokesperson Laura Wheeler reiterated Google's stance, saying, "Microsoft's practices lock in customers and create negative downstream effects on cybersecurity, innovation, and choice." Google Cloud's vice president Amit Zavery also accused Microsoft of charging a 400 percent markup for rival cloud providers compared to its Azure service.
Alaily countered Google's argument by comparing the situation to media streaming services. "When a streaming service includes a movie, they pay for that right regardless of whether a subscriber already owns a DVD of the same movie. The same principle applies to software and cloud services," she argued.
The public unveiling of these accusations marks a significant escalation in the competitive tension between the two tech giants, which had previously ended a six-year truce in 2021. With cloud services at the core of their renewed conflict, the battle between Microsoft and Google shows no signs of abating.