Google thought it was a pretty big deal to offer an EU competition authority in conjunction with its cloud views
In a shocking development in the ongoing EU antitrust case against Microsoft, both Microsoft and rival tech giant Google have been caught offering incentives to the Cloud Infrastructure Service Providers of Europe (CISPE) group regarding licensing practices.
CISPE recently confirmed that it will accept a €20 million settlement from Microsoft. The settlement is intended to address Microsoft’s past practice of offering its software at lower prices when using its own Azure cloud services.
The arrangement is not yet fully finalised, but there has already been criticism of the way in which non-CISPE members are being excluded within the EU.
Google accused of bribing EU antitrust regulators
Google Cloud’s Amit Zavery said: “Microsoft’s approach of buying off complainants instead of addressing the substance of their complaint hurts businesses and should not fool anyone.”
However, an anonymous cloud provider has (via The register) that, just days before the announcement, Google proposed a package worth about €455 million in software licenses and €14 million in cash over five years. The deal was reportedly contingent on the EU upholding its complaint against Microsoft.
On the other hand, the deal with Microsoft, which was partially accepted, required the complaint to be withdrawn.
AWS, the only CISPE member of the three hyperscalers, reportedly supported Google’s offer and stressed the importance of fair software licensing.
An Amazon Web Services spokesperson noted, “AWS is a founding member of CISPE and has made regular voluntary contributions to CISPE. Companies in every major industry have long supported trade associations in similar ways.”
The Google spokesperson added: “Google Cloud has long supported the principles of fair software licensing. We have had discussions about joining as a member to help CISPE fight anti-competitive licensing and to promote choice, innovation and the growth of the digital economy in Europe.”
While the final solution remains to be confirmed, the EU competition investigation into cloud application licensing conditions is expected to result in a fairer and more interoperable environment overall.
A CISPE spokesperson shared in an email to Ny Breaking: “I can confirm that CISPE members were presented with alternative options to accept the Microsoft deal. I cannot reveal any of the terms. However, members voted overwhelmingly to accept the Microsoft offer, which they believed offered the best opportunity for the European cloud sector.”