Microsoft publicly accused its longtime rival Google on Monday of conducting “shadow campaigns” in Europe aimed at undermining the software giant’s reputation with regulators.
In a blog post, Microsoft lawyer Rima Alaily revealed that Google had engaged a firm to enlist European cloud companies to advocate for its interests against Microsoft.
This unprecedented move highlights the escalating tensions between the two tech giants as they compete for dominance in the cloud services market.
“This week an astroturf group organized by Google is launching.
“It is designed to discredit Microsoft with competition authorities, and policymakers and mislead the public. Google has gone through great lengths to obfuscate its involvement, funding, and control, most notably by recruiting a handful of European cloud providers, to serve as the public face of the new organization,” Microsoft lawyer Rima Alaily wrote.
The conflict marks a new chapter in the ongoing rivalry between Microsoft and Google, as both companies compete in cloud infrastructure, online advertising, and productivity software.
Google is currently facing increased regulatory scrutiny in Europe and the U.S., where it is involved in its second antitrust trial initiated by the Justice Department.
Alaily suggested that Google enlisted the advisory firm DGA Group to establish the Open Cloud Coalition.
One company that declined to join the coalition informed Microsoft that it would be financially supported by Google and would focus on criticizing Microsoft’s practices in Europe, according to Alaily.
Alaily linked to a flyer for the Open Cloud Coalition. The overview in the attached document says the consortium was “being formed to advocate for a fair, competitive and open cloud services industry across the UK and EU.”
Representatives from DGA Group did not respond immediately to a request for comment regarding the allegations.
“We’ve been very public about our concerns with Microsoft’s cloud licensing,” a Google cloud spokesperson said.
“We and many others believe that Microsoft’s anticompetitive practices lock-in customers and create negative downstream effects that impact cybersecurity, innovation, and choice,” he added.
In September, Google announced it was filing a complaint against Microsoft with the European Commission, alleging unfair practices related to the licensing of the Windows Server operating system.
Microsoft counters that clients can save an average of 36% by using Windows Server on its cloud platform compared to Amazon Web Services.
