Google recently made an unsuccessful attempt to disrupt a Microsoft antitrust settlement in the European Union. The tech giant tried to offer an alternative deal worth $500 million to the Cloud Infrastructure Services Providers in Europe (CISPE) in order to prevent them from settling with Microsoft. However, despite the significant sum of money involved, CISPE went ahead and settled with Microsoft, much to Google’s dismay.
CISPE had initially raised concerns about Microsoft’s allegedly anticompetitive practices, claiming that the tech giant was harming the European cloud ecosystem. The settlement reached between CISPE and Microsoft did not include major rivals like Amazon and Google, raising questions about the terms of the deal. While the exact details of the settlement remain undisclosed, it is known that Microsoft agreed to cover CISPE’s legal fees for three years with a reported sum of around $22 million.
Google’s attempt to sway CISPE away from settling with Microsoft is indicative of its efforts to compete with tech giants like Microsoft and Amazon in the cloud market. Google’s cloud business has shown promising growth, breaking even for the first time last year and exceeding profit projections in the first quarter of 2024. With the global cloud market becoming a key growth area for Google, the company has been looking to challenge Microsoft’s dominance, especially in the EU.
Despite the failed attempt to derail the settlement, Google remains committed to fair software licensing practices and has expressed interest in joining CISPE to combat anticompetitive behaviors in the industry. CISPE spokesperson Ben Maynard stated that members were presented with alternative options to the Microsoft deal, but ultimately chose to accept the offer as the best opportunity for the European cloud sector.
While the resolution may not have been perfect, CISPE believes that it will enable European cloud providers to offer Microsoft applications and services on their local infrastructures, meeting the demand for sovereign cloud solutions. The primary goal behind CISPE’s initial complaint was to support smaller cloud service providers like Aruba and OVH, and the settlement with Microsoft is seen as a step towards achieving that objective.
In conclusion, Google’s failed attempt to disrupt Microsoft’s EU cloud deal sheds light on the competitive dynamics in the tech industry, particularly in the cloud market. As tech giants vie for market share and regulatory scrutiny increases, strategic maneuvers like Google’s counteroffer to CISPE highlight the complexities of the ongoing competition in the industry.
