Microsoft exposes Google's shadow campaigns and lobbying efforts in Cloud Computing battle
Microsoft reveals Google's covert operations to influence cloud computing market through undisclosed funding and lobbying groups.
In a revealing blog post published October 28, 2024, Microsoft has unveiled what it describes as Google's coordinated shadow campaigns designed to discredit competitors and influence cloud computing policy across Europe and the United States.
According to Microsoft's Deputy General Counsel, Rima Alaily, Google is launching a new astroturf group this week specifically designed to discredit Microsoft with competition authorities and policymakers. The organization, which involves several European cloud providers, reportedly obscures Google's involvement, funding, and control, with Google positioning itself as a minor participant rather than the driving force behind the initiative.
The revelation comes after Google's unsuccessful attempt to derail a settlement between Microsoft and CISPE (Cloud Infrastructure Services Providers in Europe) in July 2024. Microsoft disclosed that Google offered CISPE members a combination of cash and credits worth $500 million to reject the settlement and continue pursuing litigation. CISPE members ultimately declined the offer and proceeded with the Microsoft resolution.
Google's strategic objectives
Microsoft identifies two primary goals in Google's astroturfing efforts:
- Divert attention from Google's own regulatory challenges, which include 24 antitrust investigations worldwide
- Manipulate the regulatory landscape to benefit Google's cloud services instead of competing on merit
Pattern of shadowy operations
Microsoft detailed several aspects of Google's broader campaign:
- Funding industry commentators and academics to attack Microsoft
- Publishing studies designed to discredit competitors
- Distributing misleading documents about Microsoft's approach to the Chinese market
- Acting as the primary funder of the U.S.-based Coalition for Fair Software Licensing
- Orchestrating attacks on topics ranging from cybersecurity to Microsoft's business in China
Recent regulatory complaint
The blog post addresses Google's September 2024 complaint to the European Commission regarding Microsoft's software licensing practices. Microsoft argues that Google's fundamental position is that it shouldn't have to pay for using Microsoft's intellectual property when building cloud services, drawing a parallel to streaming services paying for movie rights regardless of customer ownership of DVDs.
Microsoft's response strategy
Microsoft emphasized its approach to addressing market concerns:
- Making proactive changes to business and enterprise productivity suites
- Creating versions without Teams at lower prices
- Responding to legitimate feedback from customers, partners, and regulators
- Maintaining transparency in its business practices
Industry impact
The revelations come at a critical time for both companies:
- Google faces 24 antitrust investigations in major digital markets
- Google Cloud Platform seeks to compete with Microsoft's Azure
- European cloud providers navigate complex relationships with global tech giants
Key Facts
- Blog Post Date: October 28, 2024
- Author: Rima Alaily, Microsoft Deputy General Counsel
- Antitrust Investigations: 24 ongoing cases against Google
- Failed Intervention: $500 million offer to CISPE
- Scope: Operations across Europe and United States
- Focus Areas: Cloud computing, software licensing, competition policy