Microsoft accuses Google of destroying its Cloud business in Europe from the shadows

Amazon, Google, and Microsoft have a significant portion of their business in the cloud and server sector. They all strive to improve their customer share year after year, even though AI is the new darling of the tech sector. The cloud business is more powerful than ever and generates a lot of money.

That is why it is not surprising that large companies play all their cards to get as many customers as possible, even if, along the way, they have to discredit their rivals, as is the case today.

Microsoft’s Deputy General Counsel, Rima Alaily, has criticized Google’s efforts to influence European regulators with the launch of the Open Cloud Coalition, a group of 10 cloud companies campaigning for a fairer and more competitive cloud landscape in the UK, Europe, and other countries.

Microsoft says Google is behind ‘shadow campaigns’ to undermine its cloud business https://t.co/nCpHnzdZzu

— The Verge (@verge) October 28, 2024

Alaily criticized Google for forming a lobbying group, which she says is part of a broader attempt by the company to undermine its competitors.

Additionally, Alaily stated that Google has organized the group as a front to discredit Microsoft’s business practices in Europe, which antitrust regulators have recently criticized.

Hidden campaigns against Microsoft and its cloud

The deputy general counsel of Microsoft claimed that Google has recruited small European cloud service providers as the public face of the coalition to hide its involvement and divert regulators’ attention from its own business practices, noting that the company has done everything possible to appear as a secondary member of the Coalition.

Google-backed Open Cloud Coalition launches to lobby European lawmakers https://t.co/UkPaRQvDDB

— TechCrunch (@TechCrunch) October 28, 2024

The group is made up of international companies such as Centerprise International, Civo, and Gigas, and national ones like ControlPlane, DTP Group, Prolinx, Pulsant, Clairo, and Room 101.

Google Cloud may be the only hyperscaler in the group, but this is not uncommon. CISPE, a group of cloud companies operating in Europe, has only one resident hyperscaler: AWS.

The blog post by Alaily also highlights Google’s failed efforts to get CISPE members to maintain their case against Microsoft. Apparently, Google offered 470 million euros in favor, but the group ultimately decided to go with Microsoft’s agreement.