Microsoft accuses Google of ‘shadow campaign' to influence cloud regulation in Europe

Core Points - The European cloud market is experiencing intensified competition, with Microsoft accusing Google of covertly undermining Azure to gain favor with European regulators [1][9] - Microsoft has criticized the formation of the Open Cloud Coalition, which includes Google and smaller cloud providers, labeling it as an "astroturf group" orchestrated by Google [2][3] - The coalition aims to advocate for market principles like openness and interoperability, with its launch coinciding with ongoing regulatory scrutiny of cloud services in Europe [5][8] Group 1: Coalition Formation and Allegations - Microsoft deputy general counsel Rima Alaily claims that Google is attempting to obscure its involvement in the Open Cloud Coalition, which is led by Civo's public sector director Nicky Stewart [2][3] - The coalition is set to launch with 10 members, including Google and several smaller cloud providers, although its website is not yet live [4] - Alaily suggests that Google's strategy may involve offering incentives to smaller companies to join the coalition [3] Group 2: Regulatory Context and Antitrust Complaints - The backdrop includes a 2019 licensing change by Microsoft that raised costs for running its software on rival cloud services, prompting an antitrust complaint from the Cloud Infrastructure Services Providers in Europe (CISPE) [5][6] - Microsoft settled with CISPE in July, reportedly including a $22 million payment and commitments to improve access for other cloud providers [6] - Google filed a separate antitrust complaint against Microsoft, alleging anti-competitive practices, after attempting to financially support CISPE's case against Microsoft [7] Group 3: Broader Implications and Goals - The launch of the coalition aligns with a new European Commission taking office and an ongoing investigation into cloud vendor lock-in practices, particularly focusing on AWS and Microsoft [8] - Alaily argues that Google's lobbying efforts aim to distract from its regulatory challenges in the U.S. and to shift the regulatory landscape in favor of its cloud services [9][10] - A Google spokesperson acknowledged its coalition membership and criticized Microsoft's licensing practices for creating negative impacts on the market [10]