Key Takeaways
- Microsoft claims that in order to influence European cloud policies to its advantage, Google is supporting a coalition.
- Microsoft claims that Google’s participation is an attempt to divert attention away from its own regulatory issues.
- The conflict demonstrates the growing struggle for dominance in the cloud business in Europe.
Microsoft has officially accused Google of spearheading a covert effort to influence European cloud computing regulations, which is a shocking development.
According to a blog post written by Microsoft’s deputy general counsel Rima Alaily on Monday, Google is the covert driving force behind the soon-to-be Open Cloud Coalition, a group purportedly supporting fair competition in the cloud services sector.
Microsoft claims that, while purposefully avoiding direct participation, Google has supported consulting company DGA Group in its efforts to enlist smaller European cloud providers into this alliance.
The group targets Microsoft’s cloud licensing practices, which some claim limit competition, and was purportedly formed to address purported market constraints within the EU cloud business. The group was established in response to Google’s September antitrust case against Microsoft, which was submitted to the European Commission.
Microsoft and Google Face Antitrust Pressure
These charges coincide with continued regulatory examination of the two internet giants. Prosecutors are attempting to force Google to sell off Google Ad Manager as part of ongoing antitrust proceedings against the company in the US. However, Microsoft recently reached a $22 million agreement to resolve disagreements with European cloud providers on licensing procedures.
According to Microsoft, Google’s actions are a diversionary strategy intended to divert attention away from its own regulatory problems and gain a competitive edge in the cloud market.
The spat between Google and Microsoft highlights the high stakes in the quickly expanding European cloud sector, which is expected to reach $115 billion by 2032.
At the moment, Google Cloud, Microsoft Azure, and Amazon Web Services (AWS) control the majority of the European cloud industry. Together, these three suppliers own over 72% of the local market, and their influence is only growing.
This intensifying competition demonstrates how big internet firms are fighting for control over cloud policy in Europe, where new regulatory frameworks are being considered.
