The European cloud industry is currently experiencing a surge in competition as Microsoft and Google engage in a battle for dominance. Microsoft has accused Google of engaging in a covert campaign to undermine Azure’s position in the market by influencing European policymakers and antitrust authorities.
In response to the upcoming launch of the Open Cloud Coalition, Microsoft’s deputy general counsel, Rima Alaily, has criticized the group as an “astroturf organization” orchestrated by Google. Alaily claims that Google has manipulated smaller European cloud providers to front the coalition while concealing its true involvement and financial contributions.
The Open Cloud Coalition, spearheaded by Nicky Stewart of Civo, is set to officially launch with the backing of the DGA Group, an advisory firm. While the coalition aims to advocate for cloud market principles such as openness and interoperability, Microsoft has raised concerns about Google’s intentions behind its involvement.
The backdrop of this conflict stems from Microsoft’s 2019 licensing change, which increased the cost of running its enterprise software on rival cloud platforms. This move prompted the Cloud Infrastructure Services Providers in Europe (CISPE) to file an antitrust complaint against Microsoft, resulting in a settlement that excluded major cloud players like AWS and Google.
Google subsequently filed its own antitrust complaint against Microsoft, alleging anti-competitive licensing practices. The ongoing battle between these tech giants is further complicated by European regulatory investigations into cloud vendor lock-in practices, with AWS and Microsoft under scrutiny.
In light of these developments, Google’s efforts to launch its version of CISPE and lobby European regulators are seen as attempts to distract from regulatory challenges it faces globally, particularly in the U.S. where it is under scrutiny for monopolistic practices in the search and advertising markets.
While Google maintains that its participation in the coalition is driven by concerns over Microsoft’s licensing practices, Microsoft sees these actions as an attempt to discredit its cloud services and gain a competitive advantage in the market. The clash between these industry titans underscores the intensifying competition and regulatory landscape of the European cloud market.
