Microsoft slams Google’s ‘shadow campaigns’ as feud over cloud regulation escalates

Microsoft has fired shots at Google over its activity in the European cloud market, accusing the latter of conducting ‘shadow campaigns’ in the region.

Rima Alaily, competition and market regulation lead at Microsoft, took to the company blog and claimed Google has played a part in creating a new organization designed specifically to discredit Microsoft.

She called it an “astroturf” organization, one which is driven by ulterior motives though presented as a grassroots effort, adding that Google has gone to lengths to obfuscate its involvement in the group's funding and control.

“When the group launches, Google, we understand, will likely present itself as a backseat member rather than its leader. It remains to be seen what Google offered smaller companies to join, either in terms of cash or discounts,” Alaily said.

Following Alaily’s comments, Google was revealed as a member of the newly formed ‘Open Cloud Coalition’ which, in its own words, seeks to drive openness and competition across the EU, UK, and global markets.

According to Alaily, Google hired a lobbying and communications agency to establish this new organization. One company that declined to join the group reportedly told Microsoft the group would be directed and funded to attack Microsoft’s cloud computing business in the EU and the UK.

Alaily added that Google’s motivation for the move is two-pronged – to distract from ongoing regulatory scrutiny against Google around the world and to tilt the regulatory landscape in its favor instead of competing on its own merits.

"It is disappointing that, with the foundation of their business facing jeopardy, they have sought to bolster their cloud computing service – Google Cloud Platform – by attacking ours,” she said.

Google and Microsoft’s long-running feud 

As part of her seething criticism, Alaily mentioned an incident in July 2024 whereby Google attempted to scupper a Cloud Infrastructure Services Providers in Europe (CISPE) settlement with Microsoft.

Google offered CISPE $512 million in a combination of cash and software licenses to keep up its litigation with Microsoft, though CISPE ultimately declined.

More recently, Google filed a formal EU complaint against Microsoft over cloud practices, alleging the latter to be guilty of anti-competitive practices by locking users into its Azure platform.

Google claimed that Microsoft’s licensing terms stop European customers from moving Microsoft workloads to competitor’s clouds.

The rival hyperscaler certainly isn’t the only organization with concerns about Microsoft’s competitive practices.

AWS has chimed in with its criticisms of the firm, while regulators in both the UK and EU have probed Microsoft’s market control.

Google has since responded to Microsoft's claims, with a spokesperson noting that the firm has been "very public about our concerns with Microsoft's cloud licensing".

"We and many others believe that Microsoft's anticompetitive practices lock-in customers and create negative downstream effects that impact cybersecurity, innovation, and choice," the spokesperson said.