Microsoft has launched a direct attack on Google, accusing the search giant of secretly influencing European competition authorities and leading a campaign to tarnish Microsoft’s reputation in the cloud sector. The claim was made public via a sharply worded blog post by Microsoft’s deputy general counsel, Rima Alaie, who pointed to a new group, the Open Cloud Coalition, launching soon in Europe. Microsoft claims that Google organized this group and presented small European cloud providers as its public face to avoid scrutiny of Google’s motives. The issue is layered and complex but let’s decompose it and take a look at the specific concerns raised by Microsoft.

Alleged “Astroturf” alliance

According to Microsoft’s Alai, the Open Cloud Coalition, ostensibly to advocate for smaller European cloud providers, is actually a front organized and funded by Google. “An Astroturf group hosted by Google is launching this week,” Elilee noted in the blog post. Microsoft has accused Google of taking advantage of smaller companies to hide its involvement, leading to the creation of the “Astroturf” organization – an industry slang for a purported grassroots movement that is actually supported by corporate interests. Is. Microsoft also claims that Google is trying to mislead regulators and the public by not openly leading this initiative. Instead, it plans to reduce its role by putting smaller companies at the forefront.

It gets better, or it gets worse. Microsoft also highlighted how Google reportedly tried a similar tactic with CISPE (Cloud Infrastructure Services Providers in Europe) earlier this year. When CISPE was close to settling its own dispute with Microsoft, Google offered CISPE members $500 million as an incentive to reject the settlement and continue the lawsuit. However, CISPE rejected Google’s proposal and moved forward with Microsoft’s resolution.

Microsoft’s opinion on Google’s endgame

But why would Google go to such lengths to support an anti-Microsoft coalition? According to Microsoft’s Alai, Google is attempting to divert attention from its own regulatory issues. “Never in the past two decades has Google’s monopoly on search, digital advertising and the mobile app store faced such a concrete and determined threat,” he said, citing at least 24 ongoing antitrust investigations against Google globally. Huye gives arguments. Microsoft believes that, with increased scrutiny of Google, the company is attempting to weaken rivals such as Microsoft Azure in order to strengthen its own cloud platform, Google Cloud Platform.

Specific complaints by Microsoft, and the hyperscale hypothesis

As evidence of Google’s influence campaign, Microsoft points to Google’s recent public complaint to the European Commission regarding Microsoft’s cloud software licensing practices. Google’s complaint, which it chose to announce publicly rather than file confidentially, challenges the fees Google pays to use Microsoft software such as Windows Server within its cloud services. According to Google’s argument, Microsoft’s licensing terms are restrictive and create an unreasonable cost burden.

Microsoft argues that Google’s analogy is flawed, arguing that when a media service like Netflix includes content, it pays a licensing fee, even if the user already owns that content on DVD or some other format. Be the owner of. “Software and cloud are not separate,” Alai explains, emphasizing that Google shouldn’t expect a discount just because it includes Microsoft’s software.

Microsoft also argues that Google is attempting to position itself as a “non-hyperscale” provider – a smaller player needing regulatory support against larger giants. Elie described this stance as “unbelievable” given Google’s massive data center network, noting that Google has more data center capacity than any other provider, with $13 billion in infrastructure investments and Supported by a growth rate of 29 percent in the last quarter alone.

Google’s obscure lobbying strategy?

Microsoft also claims that Google has a long history of using underhanded tactics to influence regulators. Microsoft has accused Google of directly and indirectly funding academics and industry commentators who defame Microsoft through published articles and “studies”. Microsoft says these paid commentators “undermine true expertise and antitrust enforcement.”

The blog post refers to a recent op-ed by a commentator who argued for greater regulatory intervention against Microsoft, though the author’s ties to Google were disclosed only after Microsoft flagged the publication with . Microsoft says this is part of a larger pattern in which Google works through middlemen, including the US-based Coalition for Fair Software Licensing, which lobbies against Microsoft’s cloud business in the US, UK and Europe. Is.

Microsoft has also accused Google of launching an “attack campaign” on unrelated topics such as cybersecurity and planting negative stories about Microsoft’s operations in China to media outlets and government agencies around the world. Microsoft argues that this “shady” approach is less about improving cloud services than it is about discrediting competitors as much as possible.

Microsoft’s own perspective: calling for reliability

In response to Google’s alleged lobbying, Microsoft describes its approach to regulatory challenges as collaborative and responsive. The company emphasizes its willingness to engage with regulators and adjust its business practices in response to genuine concerns. Microsoft cites recent changes to its business and enterprise productivity suites, which now include versions without Microsoft Teams at a lower price. This was after a response from the European Commission.

Microsoft vs Google: What it means for the cloud industry and customers

Microsoft’s war with Google is a big deal. If Google’s alleged strategy is successful, Microsoft warns that non-hyperscale cloud providers and their customers could be at the greatest disadvantage. As competition regulators continue to scrutinize the cloud sector, this battle for influence and favorable treatment could impact the cost and accessibility of cloud services.

But there is another side to this also. If Microsoft’s allegations against Google prove unfounded, Microsoft risks undermining its credibility with regulators, partners, and customers. Making unsubstantiated criticism could backfire, portraying Microsoft as an overly sensitive market player more focused on shaming rivals than promoting healthy competition. Regulators could then scrutinize Microsoft’s own strategy more closely, potentially imposing stricter oversight on its cloud operations. As said, Microsoft also wouldn’t make such big allegations just like that.

The big picture: While Google and Microsoft remain at odds, both companies are positioning themselves as champions of fair competition. Still, Microsoft’s latest revelations add a layer of complexity to the debate, as it accuses Google of hiding behind the same policies it is promoting. Right now, we can’t do anything except watch this whole thing unfold and see which tech giant’s version of “fair competition” wins.