Google allegedly offered €470m package to prevent Microsoft’s EU antitrust pact

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s unit allegedly offered a deal worth about 470 million euros ($512 million) to a group of EU-based cloud computing companies in an unsuccessful attempt to prevent the association’s antitrust settlement with Microsoft (MSFT), Bloomberg News reported.

Last week, the industry organization Cloud Infrastructure Service Providers in Europe, or CISPE, announced that it has reached an agreement with Microsoft to settle issues related to allegedly unfair software licensing for cloud infrastructure providers and their customers.

The move potentially saved the tech giant from a hefty fine and further EU investigation. CISPE has alleged that Microsoft’s conduct is damaging the European cloud ecosystem and depriving customers of cloud deployment choices.

However, just days before the deal was revealed, Google made a counterproposal aimed at persuading CISPE to uphold its complaint in the EU, the report added, citing people with knowledge of the matter and confidential documents seen by the news agency.

The package consisted of Google cloud software licenses worth approximately €455 million for a five-year period and €14 million in cash as part of a long-term partnership with Google, the report added.

The Google deal was the subject of CISPE, which upheld an EU antitrust complaint about alleged Microsoft abuses. It was expanded with about €6 million in financial contributions from Amazon Web Services (AMZN) Amazon, as part of an ongoing partnership with the group, according to the report.

But the package did not deter CISPE members, which include several EU companies. Instead, they decided to accept an offer that would allow them to use improved Microsoft Azure features — service providers could offer Microsoft applications and services on their local cloud infrastructures. The report added that Microsoft’s deal also includes €10 million in financial assistance.

AWS said it is a founding member of CISPE and regularly makes voluntary contributions to CISPE. “Companies from every major industry have long supported trade associations in similar ways,” AWS added.

Google stressed that it has long supported fair software licensing principles and that it is in talks to join CISPE to combat anti-competitive licensing practices, citing a Google spokesperson in the report.

A CISPE spokesman noted that members were given alternative options to accept the Microsoft deal, but declined to confirm any of the terms of the offer, the report noted.

Following the settlement with Microsoft and CISPE, Google Cloud CEO Amit Zavery reportedly stated that the company will consider options to combat Microsoft’s licensing practices.