Microsoft Accuses Google of 'Shadow Campaigns' to Undermine Its Cloud Business

October 29, 2024 at 5:47:12 AM

TL;DR Google is launching an astroturf group to discredit Microsoft with competition authorities and policymakers, using European cloud providers as the public face while hiding its involvement. This follows Google's failed attempt to weaponize CISPE against Microsoft. Google is also using paid commentators and lobbying to attack Microsoft amid its own antitrust investigations. Google aims to distract from its regulatory scrutiny and promote its cloud services.

Microsoft Accuses Google of 'Shadow Campaigns' to Undermine Its Cloud Business

Since moving into her role at Microsoft, Rima Alaily has prioritized being genuine, responsive, and transparent. Despite discomfort, she criticizes Google for launching an astroturf group to discredit Microsoft. Google has obfuscated its involvement by recruiting European cloud providers to front the group. This follows Google's failed attempt to weaponize CISPE against Microsoft, offering CISPE members $500 million to reject a settlement with Microsoft, which they declined.

Google's Tactics

Google's tactics include creating astroturf lobbying organizations, speaking disingenuously, and using paid commentators to discredit Microsoft. With 24 antitrust investigations globally, Google is diverting resources to attack competitors instead of addressing legitimate business questions. Google's goals are to distract from regulatory scrutiny and tilt the regulatory landscape in favor of its cloud services.

After CISPE's rejection, Google created its own astroturf lobbying organization in Europe, recruiting small cloud providers and hiring a lobbying agency. This organization, led by Nicky Stewart, aims to attack Microsoft's cloud business in the EU and UK. Google also filed a public complaint with the European Commission about Microsoft's software licensing practices, arguing it shouldn't pay for using Microsoft's intellectual property in cloud services.

Misleading Competition Authorities

Google lobbies competition authorities to impose restrictions on hyperscale cloud competitors while presenting itself as a small provider. Despite its significant datacenter capacity and 29% growth in its cloud business, Google seeks favorable treatment. Misleading competition authorities would harm non-hyperscale cloud providers and customers globally.

Google funds industry commentators and academics to attack Microsoft and produce discrediting studies. These commentators often misrepresent their credentials. Google also funds the U.S.-based Coalition for Fair Software Licensing, attacking Microsoft's cloud business. Google has attacked Microsoft on various topics, including cybersecurity and business in China, distributing misleading documents.

Microsoft's Approach

Microsoft listens to feedback and makes changes to its products, licensing, and business strategy. This includes collaborating with CISPE on technology solutions and creating versions of productivity suites without Teams to address concerns. Microsoft aims to meet the heightened expectations of governments, regulators, policymakers, customers, and partners, unlike Google's disingenuous arguments.

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