Google reportedly offered EU cloud firms over $500 million to continue antitrust case against Microsoft
Google reportedly offered a group of EU-based cloud firms $512 million (€470 million) as an attempt to derail an antitrust settlement with Microsoft and force the continuation of a formal complaint, according to Bloomberg. The attempt failed and the settlement went through. Here’s how it went down. A non-profit trade organization called the Cloud Infrastructure Services Providers in Europe (CISPE) issued a complaint to the EU’s antitrust arm, alleging that Microsoft made it too difficult for business customers to change providers because the software was tied to Azure cloud services. This led to a negotiation between CISPE and Microsoft to give the former better access to the latter’s technologies and end the formal complaint. That’s when Google, a rival to Microsoft, stepped in. The company allegedly offered the aforementioned financial package to the group, so long as they continued with the complaint. This is according to confidential documents and people familiar with the matter, all of which were vetted by Bloomberg. The financial package broke down into two parts. The vast majority of Google’s offer included software licenses for its cloud technology over five years, with a value of $495 million or €455 million. The remaining amount was offered in cash, as well as a long-term partnership proposal. Amazon Web Services (AWS) also contributed money to Google's offer, despite being an actual member of CISPE. Google’s deal was conditional, however, on CISPE continuing its EU antitrust complaint against Microsoft. This didn’t influence the cloud companies that comprise CISPE, which are mostly European firms. Instead, the group went in the opposite direction. It entered into a similar agreement with Microsoft that allows them to use enhanced Azure features and gives them the ability to offer Microsoft products and services on their local cloud infrastructures. There was also a cash payout agreement from Microsoft to CISPE of around $11 million, according to people familiar with the agreement. "Microsoft's playbook of paying off complainants rather than addressing the substance of their complaint hurts businesses and shouldn't fool anyone," Amit Zavery, head of platform at Google Cloud, told CRN. “We are exploring our options to continue to fight against Microsoft's anti-competitive licensing in order to promote choice, innovation, and the growth of the digital economy in Europe.” It’s worth noting that Zavery didn’t address the allegations that, well, Google did the same exact thing. According to The Register, an individual familiar with the matter called Google’s response “a bit rich.”This article originally appeared on Engadget at https://www.engadget.com/google-reportedly-offered-eu-cloud-firms-over-500-million-to-continue-antitrust-case-against-microsoft-160721324.html?src=rss
Google reportedly offered a group of EU-based cloud firms $512 million (€470 million) as an attempt to derail an antitrust settlement with Microsoft and force the continuation of a formal complaint, according to Bloomberg. The attempt failed and the settlement went through.
Here’s how it went down. A non-profit trade organization called the Cloud Infrastructure Services Providers in Europe (CISPE) issued a complaint to the EU’s antitrust arm, alleging that Microsoft made it too difficult for business customers to change providers because the software was tied to Azure cloud services.
This led to a negotiation between CISPE and Microsoft to give the former better access to the latter’s technologies and end the formal complaint. That’s when Google, a rival to Microsoft, stepped in. The company allegedly offered the aforementioned financial package to the group, so long as they continued with the complaint. This is according to confidential documents and people familiar with the matter, all of which were vetted by Bloomberg.
The financial package broke down into two parts. The vast majority of Google’s offer included software licenses for its cloud technology over five years, with a value of $495 million or €455 million. The remaining amount was offered in cash, as well as a long-term partnership proposal. Amazon Web Services (AWS) also contributed money to Google's offer, despite being an actual member of CISPE.
Google’s deal was conditional, however, on CISPE continuing its EU antitrust complaint against Microsoft. This didn’t influence the cloud companies that comprise CISPE, which are mostly European firms. Instead, the group went in the opposite direction. It entered into a similar agreement with Microsoft that allows them to use enhanced Azure features and gives them the ability to offer Microsoft products and services on their local cloud infrastructures. There was also a cash payout agreement from Microsoft to CISPE of around $11 million, according to people familiar with the agreement.
"Microsoft's playbook of paying off complainants rather than addressing the substance of their complaint hurts businesses and shouldn't fool anyone," Amit Zavery, head of platform at Google Cloud, told CRN. “We are exploring our options to continue to fight against Microsoft's anti-competitive licensing in order to promote choice, innovation, and the growth of the digital economy in Europe.”
It’s worth noting that Zavery didn’t address the allegations that, well, Google did the same exact thing. According to The Register, an individual familiar with the matter called Google’s response “a bit rich.”This article originally appeared on Engadget at https://www.engadget.com/google-reportedly-offered-eu-cloud-firms-over-500-million-to-continue-antitrust-case-against-microsoft-160721324.html?src=rss
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