- Microsoft accused Google of undermining its business with “shadow campaigns”.
- He alleged that Google formed a group to influence cloud regulation in Europe.
- Microsoft leads Google in cloud market share, while Amazon Web Services is on top.
Microsoft has publicly accused Google of running “shadow campaigns” to undermine its business and influence cloud regulation in Europe, in an escalation of the tech giants’ rivalry.
In a blog post shared Monday, Rima Alaily, Microsoft’s deputy general counsel, accused Google of designing a group — called the Open Cloud Coalition — to tilt the regulatory landscape in favor of its own cloud services. The group includes Google and several smaller cloud providers.
“An astroturf group hosted by Google is launching this week,” Alaily wrote. “It is designed to discredit Microsoft with competition authorities and policymakers and to mislead the public. Google has gone to great lengths to obscure its involvement, funding and control, notably by recruiting a handful of European cloud providers, to served as the public face of the new organization”.
A Google spokesperson told Business Insider that the company had been “very public” about concerns about Microsoft’s cloud licensing.
“We and many others believe that Microsoft’s anticompetitive practices lock out customers and create negative downstream effects that affect cybersecurity, innovation and choice,” the spokesperson said.
Nicky Stewart, a senior adviser to the Open Cloud Coalition, told Business Insider that the group was transparent to its members.
“We are not anti-any company, we are a pro-market coalition that is focused on advocating principles that will strengthen the market for cloud services in Europe, primarily openness and interoperability,” Stewart said. “Any company that shares these values and cares about a healthy and thriving cloud market should join us.”
Cloud wars
Microsoft’s public accusation is an unusual step that could signal intensifying tensions between the two old rivals.
Last month, Google filed an antitrust complaint against Microsoft with the European Commission, alleging that the company was using anti-competitive licensing practices to force companies to stick with its Azure cloud infrastructure.
Rival Big Tech companies compete in various markets, including cloud infrastructure, research, AI and productivity software.
But Microsoft has historically beaten Google in cloud sales.
In the second quarter, Google Cloud generated $10.35 billion in revenue, while Microsoft’s Azure, included as part of the company’s Intelligent Cloud group, reported $28.5 billion in revenue.
In 2023, Google Cloud generated $33.7 billion in sales, while Microsoft’s Intelligent Cloud group reported $96.8 billion in sales. Amazon Web Services, the e-commerce giant’s cloud business, is the leading provider by market share.
Alaily also accused Google of trying to deflect attention from regulatory scrutiny after recent antitrust rulings.
In the US, the Justice Department is considering asking a judge to break up Google. In August, a federal judge ruled that Google has violated antitrust law with its search engine.
The big tech company has also faced an antitrust probe of its Android app store. In a recent ruling in Epic Games’ Blockbuster antitrust case, a judge ordered Google to open up Android to rival third-party app stores. Google has said it plans to appeal the decision.