Microsoft says Google is behind ‘ghost campaigns’ to undermine its cloud business

Microsoft is taking off its gloves today. The software giant accuses Google of being behind what it calls “ghost campaigns” aimed at discrediting Microsoft’s cloud business. In a scathing blog post, Microsoft Deputy General Counsel Rima Alaily reveals that Google is set to launch a new “astroturf” group this week.

“This is intended to discredit Microsoft with competition authorities and policymakers and to mislead the public,” says Alaily. “Google went to great lengths to conceal its involvement, funding and control, including recruiting a handful of European cloud providers, to serve as the public face of the new organization. When the group launches, Google, as far as we know, will likely present itself as a secondary member rather than its leader.

Google has reportedly hired a lobbying and communications agency in Europe to create this new lobbying organization. Microsoft appears to have become aware of the campaign after an unnamed European cloud provider declined to join and informed it. “One of the companies approached, which ultimately declined, told us that the organization would be run and largely financed by Google with the aim of attacking Microsoft’s cloud computing activities in the European Union and the United Kingdom “, explains Alaily.

Microsoft alleges that Google tried to derail its deal with the Cloud Infrastructure Services Providers in Europe (CISPE) group in July. “Google offered CISPE members a combination of cash and credits amounting to a staggering $500 million to reject the settlement and pursue legal action,” says Alaily. CISPE finally reached an agreement with Microsoft to withdraw its 2022 EU complaint after the software giant allowed European cloud providers to offer Microsoft’s applications and services on local cloud infrastructure.

Google has publicly complained about Microsoft’s licensing fees for Windows Server. Google Cloud Vice President Amit Zavery told reporters last month that Microsoft is charging customers a 400% premium to continue using Windows Server on competing cloud providers, but that those fees don’t increase. did not apply on Azure.

“Basically, Google’s argument is that it should not have to pay Microsoft when it creates and offers cloud services using our intellectual property – namely Windows Server – if customers have otherwise purchased the same software for a very different use, i.e. on their own server. », argues Alaily. “We disagree. When a streaming service, like Netflix or Disney, includes a movie in its service, it pays for that right. They do not benefit from credits or discounts if a subscriber owns a DVD of the same film. Software and the cloud are no different.

Microsoft and Google ended a six-year truce in legal battles in 2021, and since then we’ve seen hints that the two could return to the bitter rivalry that led to Scroogled and disputes over services Google on Windows Phone. Today, it seems the war of words is back, with cloud competition at the center of this latest battle.