How Google Tried to Overturn Microsoft’s Antitrust Settlement

€470m Package: How Google Tried to Destroy Microsoft's Antitrust Settlement — Google has submitted a counter-proposal to CISPE to uphold the EU complaint against Microsoft

What is the story

Google, a subsidiary of Alphabet Inc., recently offered the Cloud Infrastructure Service Providers of Europe (CISPE) a package worth about €470 million ($512 million).

The offer was an unsuccessful attempt to disrupt CISPE’s antitrust settlement with Microsoft.

With this settlement, Microsoft avoided a potentially costly European Union case that followed a CISPE complaint about Microsoft’s software licensing process.

CISPE Complaint and Settlement with Microsoft

CISPE has filed a complaint with the EU antitrust authority, arguing that Microsoft’s software licensing process makes it difficult for customers to switch cloud computing providers.

The complaint concerned the bundling of Microsoft business software with Azure cloud services.

However, CISPE withdrew its complaint last week after negotiating a deal aimed at fairer access to Microsoft technology.

Google’s Counterproposal to Uphold CISPE Complaint in EU

Days before the announcement of the agreement between CISPE and Microsoft, Google submitted a counterproposal aimed at persuading CISPE to maintain its complaint in the EU.

According to BloombergThe Google package consisted of Google cloud software licenses worth approximately €455 million over five years and €14 million in cash.

The offer was contingent on CISPE upholding the antitrust complaint it had filed against Microsoft in antitrust proceedings.

Amazon Web Services complements Google’s offering

Google’s package was complemented by approximately €6 million in financial support from Amazon Web Services (AWS) as part of its ongoing collaboration with CISPE.

AWS stated that it is “a founding member of CISPE and has made regular voluntary contributions to CISPE.”

CISPE members have accepted an offer that allows them to use extended Microsoft Azure platform features and offer Microsoft applications on their on-premises cloud infrastructures.

Bloomberg announced that Microsoft’s offer also includes a financial contribution of 10 million euros.

Google’s Position on Fair Software Licensing

A Google spokesperson said the company has long supported fair software licensing principles and is considering joining CISPE to combat anti-competitive licensing practices.

CISPE declined to confirm any terms of the deal, but said its members had been presented with alternative options to the Microsoft deal.

Although it lags behind Amazon and Microsoft in the cloud services market, Google recently announced first-quarter profit from its cloud business of $900 million, topping analysts’ forecasts of $672.4 million.