Google tried to offer $512 million package to destroy Microsoft antitrust pact | World News

But days before the agreement was announced, Alphabet Inc., a Google unit, made a counterproposal aimed at persuading CISPE to maintain its complaint to the EU, according to confidential documents seen by Bloomberg and people familiar with the matter who asked not to be identified.

According to the documents, the package included around €455 million in software licenses for Google’s cloud technology over five years, as well as €14 million in cash, as part of a long-term partnership proposal with the Mountain View, California-based company.

Google’s offer was contingent on CISPE upholding an EU antitrust complaint about alleged Microsoft abuses. The offer was additionally augmented by about €6 million in financial support from Amazon Web Services, as part of an ongoing partnership with the association, the people said.

But the offer didn’t convince CISPE members, which include many European companies. Instead, they opted to accept an offer that would allow them to use enhanced Microsoft Azure capabilities—with service providers allowed to offer Microsoft apps and services on their local cloud infrastructures. People familiar with the deal said Microsoft’s offer also comes with a financial contribution of 10 million euros.

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

Although Google has long lagged behind Amazon.com Inc. and Microsoft in the cloud market, it has begun to post impressive results. After breaking even for the first time last year, Google’s cloud business reported a first-quarter profit of $900 million — far exceeding analysts’ forecasts of $672.4 million. Google’s cloud unit is seen as one of the company’s best bets for growth as its core search advertising business matures.

Its efficiency could be further improved by increasing regulatory scrutiny of Microsoft’s business. EU investigations could lead to fines of up to 10 percent of global sales if regulators find evidence of competition abuses — increasing the incentive for companies to settle with complainants.

A Google spokesperson said it has long supported fair software licensing principles and that the company is in talks to join CISPE to combat anti-competitive licensing practices. Amazon did not immediately respond to Bloomberg’s request for comment.

A CISPE spokesman said association members had been presented with alternative options to the Microsoft deal but declined to confirm any of the terms of the agreement.

Microsoft cited an earlier statement by its CEO Brad Smith in which he said the company was pleased with the resolution of antitrust issues in the EU.

Microsoft has a history of skirting antitrust scrutiny by striking deals with complainants. In 2004, it gave $9.75 million to a Google-backed group, the Computer and Communications Industry Association, so it could drop a complaint about Microsoft’s practices to EU regulators.