Google denies it offered hundreds of millions of dollars support to continue Microsoft cloud probes

by DTM | Posted on
  • Google Cloud offered CISPE at least €114 million in financial incentives
  • Despite perfect timing, Google says it’s unrelated to the Microsoft complaint
  • Microsoft is accusing Google of fabricating the Open Cloud Coalition

According to a presentation seen by The Register, Google offered millions of euros in incentives to the Cloud Infrastructure Service providers in Europe (CISPE) to continue its antitrust complaint against Microsoft.

The offers reportedly included financial contributions and software credits to encourage the group to take on Google’s hyperscaler rival.

However, although Google hasn’t denied offering such financial rewards to CISPE, it says that they were not linked with an alleged effort to take on Microsoft.

Google denies trying to take on Microsoft through CISPE

The documents revealed that former Google Cloud VP Amit Zavery presented a package of benefits including a €4 million ‘Members Innovation Fun’ and an additional €10 million for trade association activities. The company also reportedly offered €100 million in Google Distributed Cloud software credits over a five-year period.

A CISPE spokesperson told The Register, “I can confirm that the CISPE members were presented with alternative options to accepting the Microsoft deal. I cannot reveal any of the terms.”

CISPE’s complaint revolves around Microsoft’s unfair licensing terms that made it expensive and technically challenging to run Microsoft software on non-Microsoft cloud platforms. A successful outcome would have benefitted Google, and indeed did when Microsoft reached a settlement with CISPE. The trade body is believed to have settled with Microsoft for €10-30 million and access to an enhanced version of Azure.

A Google spokesperson added: “Google Cloud has long supported the principles of fair software licensing. We were having discussions about joining as a member to help CISPE continue to fight against anticompetitive licensing and promote choice, innovation, and the growth of the digital economy in Europe.”

In the months that have followed the investigation, Google has joined the Open Cloud Coalition (OCC) which advocated for fairer practices and terms in the cloud market to encourage interoperability and competition. Microsoft Deputy General Counsel Rima Alaily hit back at the formation of the OCC, accusing Google of engaging in ‘shadow campaigns’ – Alaily said that Google recruited smaller companies as the face of the campaign, but that it is the leader.

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