In a striking public statement, Microsoft has accused its longstanding competitor, Google, of engaging in “shadow campaigns” in Europe aimed at tarnishing Microsoft’s image with regulatory bodies. This accusation, rooted in the escalating Microsoft Google rivalry, was made by Microsoft attorney Rima Alaily in a recent blog entry, where she claimed that Google has enlisted a consulting firm to rally European cloud companies to promote its narrative.
Alaily pointed out that, “An astroturf group orchestrated by Google is launching this week. Its purpose is to discredit Microsoft in front of competition authorities and policymakers while misleading the public.” She underscored that Google has taken extensive steps to conceal its involvement, funding, and control of this group, which reportedly includes European cloud providers acting as public advocates for this initiative.
This incident represents a new chapter in the ongoing Microsoft Google rivalry, with both companies fiercely competing in cloud infrastructure, online advertising, and productivity software markets. As Google faces mounting regulatory scrutiny in Europe and the U.S., it is currently undergoing its second antitrust trial initiated by the Justice Department.
According to Alaily, Google has hired the advisory firm DGA Group to establish what is known as the Open Cloud Coalition. A source from a company that chose not to join this coalition informed Microsoft that the group would likely receive financial support from Google and be tasked with critiquing Microsoft’s practices in the European market.
In her blog post, Alaily provided a link to a flyer outlining the goals of the Open Cloud Coalition, which claims to advocate for a “fair, competitive, and open cloud services industry across the UK and EU.” However, representatives from DGA Group have yet to respond to inquiries regarding these claims.
Responding to Microsoft’s allegations, a Google Cloud spokesperson stated, “We have been transparent about our concerns regarding Microsoft’s cloud licensing. Numerous parties believe that Microsoft’s anticompetitive actions create customer lock-in, adversely affecting cybersecurity, innovation, and customer choice.” This statement emphasizes the contentious nature of the Microsoft Google rivalry and the different perspectives both companies hold.
This confrontation is occurring as Google recently announced its intention to file a complaint with the European Commission, accusing Microsoft of unfair practices concerning the licensing of its Windows Server operating system. Microsoft asserts that clients can save an average of 36% by using Windows Server on its cloud platform compared to Amazon Web Services.
As the competition for cloud infrastructure heats up, it’s important to note that Amazon currently leads the market, with Microsoft and Google closely following. The intensity of the Microsoft Google rivalry is underscored by recent claims and counterclaims from both companies.
Alaily emphasized that Google has shown a pattern of targeting Microsoft, citing its funding of the Coalition for Fair Software Licensing, which urged the U.S. Federal Trade Commission in 2023 to investigate Microsoft. Furthermore, Alaily alleged that Google offered approximately $500 million to members of another group, the Cloud Infrastructure Services Providers in Europe, to persuade them to reject a proposed antitrust settlement with Microsoft, which was ultimately resolved in July.
Conclusion
The escalating conflict between Microsoft and Google highlights the fierce Microsoft Google rivalry within the cloud services sector and the lengths to which these tech giants might go to defend their interests. As regulatory bodies in Europe and the U.S. continue to scrutinize the practices of major technology companies, this ongoing saga will undoubtedly attract further attention across the industry and beyond.
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