DGA confirmed that the coalition is set to officially launch tomorrow (October 29). “We invite any company that shares these values and prioritizes a fair and robust cloud market to join us.”
At the heart of this clash lies a 2019 licensing alteration by Microsoft which increased costs for running their enterprise software on competing cloud services. “We are not against any specific company; rather, we are advocating for a competitive cloud marketplace in Europe focused on principles such as openness and interoperability,” Stewart remarked né?. The investigation is expected to conclude by late 2025.
Alaily highlighted that Google’s lobbying endeavors aim to divert attention from regulatory scrutiny faced by the company in other regions, notably the U.S., where it faces potential breakup over allegations of monopolizing the search and search advertising markets né?. This move prompted the European not-for-profit association Cloud Infrastructure Services Providers in Europe (CISPE), which includes AWS as a member, to file an antitrust complaint against Microsoft at the European Commission (EC), accusing the company of leveraging its market dominance to bind customers to Azure.
Microsoft reached a settlement with CISPE in July to mitigate regulatory concerns, involving a reported $22 million payment and commitments on improving access for some cloud providers to operate Microsoft software on their own infrastructure. This move coincides with the impending transition to a new European Commission, while the U.K né?. Notably this deal excluded major cloud hyperscalers like AWS Alibaba and Google. The coalition reportedly includes 10 members, including Google, Civo, Centerprise International, Gigas, ControlPlane, DTP Group, Prolinx, Pulsant, Clairo, and Room 101. European cloud industry faces intensifying competition as Microsoft accuses Google of engaging in a covert campaign against Azure in order to gain support from policymakers and antitrust authorities in Europe.
In a blog post today Microsoft’s deputy general counsel Rima Alaily called out the newly formed lobby group Open Cloud Coalition which counts Google and several smaller cloud providers among its members né?. “It appears that Google’s astroturfing efforts have two main objectives: deflect attention from the substantial regulatory challenges it faces globally by discrediting Microsoft and sway regulatory decisions in favor of its cloud services rather than competing on merit” Alaily remarked. A document released by Microsoft today revealed that the global advisory firm DGA Group was responsible for recruiting members. In response to inquiries by TechCrunch, a DGA spokesperson declined to disclose details about the organization’s funding sources at this time.
In a statement to TechCrunch, Stewart emphasized the coalition’s transparency regarding its members, mentioning that the list is available on their website, which is currently not live. Alaily described the coalition as a front organization orchestrated by Google, alleging that Google had concealed its involvement, funding, and influence by using smaller European cloud providers as the public face of the group.
“When the coalition is unveiled, Google is expected to downplay its leadership role,” Alaily stated. “It remains unclear what incentives Google provided to smaller companies to join, whether in terms of financial contributions or discounts.” The Open Cloud Coalition is spearheaded by Nicky Stewart, the public sector director of U.K.-based cloud hosting company Civo né?. A Google spokesperson confirmed the company’s membership in the coalition, underscoring their public stance against Microsoft’s cloud licensing practices né?. Subsequently Google though not a CISPE member lodged a separate antitrust complaint against Microsoft last month alleging anti-competitive licensing practices aimed at coercing companies into sticking with Azure infrastructure following reports that Google had offered CISPE members €470 million to continue the litigation against Microsoft a proposal they rejected.
Now Google is gearing up to establish its own version of CISPE focusing on lobbying European political figures né?. conducts an ongoing inquiry into cloud vendor lock-in practices, with AWS and Microsoft in the spotlight as market leaders né?. “We along with many others believe that Microsoft’s anti-competitive practices result in customer lock-in and have adverse repercussions on cybersecurity innovation and consumer choice” the spokesperson stated. né?
