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Microsoft Calls Out Google’s ‘Shadow’ Tactics Over Cloud Competition in Europe

Published
Kurt Robson
Published
By Kurt Robson
Edited by Samantha Dunn

Key Takeaways

  • Microsoft has publicly criticized Google, slamming the tech giant for allegedly using “shadowy” tactics to discredit its reputation.
  • Microsoft’s lawyer has penned an open letter outlining the company’s grievances against Google.
  • The two tech giants have been constantly embroiled in fierce competition over the past two decades.

Microsoft has taken rare public aim at Google for allegedly running a series of attacks to discredit its reputation in the cloud market.

The tech giant accused Google of pitching negative stories about Microsoft to reporters, engaging in regular attacks on the company, and even running “shadowy campaigns” in the EU to damage the company’s standing in the region.

Shadow Tactics and Attacks

In an open letter  penned by Microsoft’s lawyer, Rima Alaily, on Monday, the company claimed that Google had a history of using “shadow tactics” to discredit Microsoft.

Alaily accused Google of funding academics and industry commentators to discredit the tech giant.

“It is funding – directly and indirectly – various industry commentators and academics to attack Microsoft and author “studies” that can be cited to discredit us,” Alaily wrote.

The lawyer highlighted a recent op-ed from one commentator, who had cited ties with Microsoft and Google “perhaps to seem impartial” but was later revealed as being closely affiliated with Google.

“We took note since we had not worked with the author for many years and had no current relationship,” Alaily wrote.

“After we raised the issue with the publication, it updated the article to properly disclose the author’s affiliation with a private consulting firm which has counted Google as a client,” she added.

On top of this, Microsoft accused Google of pitching negative stories to reporters and continually attacking the company.

“Google’s work on this range of topics underscores the fact that it is less concerned about Microsoft’s conduct in the cloud market than it is with discrediting a competitor wherever it can get a foothold,” Alaily wrote.

Google’s Alleged “Astroturf” Organization

Microsoft’s accusations did not stop there. The open letter also alleged that Google hired the advisory firm DGA Group to set up the Open Cloud Coalition.

The organization, which is meant to promote the growth of small EU cloud providers, has been accused of being just a front for Google to discredit Microsoft.

“One of the companies approached, who ultimately declined, told us that the organization will be directed and largely funded by Google for the purpose of attacking Microsoft’s cloud computing business in the European Union and the United Kingdom,” Alaily noted.

The consortium describes itself  as “being formed to advocate for a fair, competitive, and open cloud services industry across the UK and EU.”

Microsoft also noted that the consortium will be run by Nicky Stewart, who they claim has “personally penned complaints against Microsoft and Amazon Web Services (AWS) in the U.K. Competition and Markets Authority’s ongoing investigation into the cloud computing market.”

“It seems Google has two ultimate goals in its astroturfing efforts: distract from the intense regulatory scrutiny Google is facing around the world by discrediting Microsoft and tilt the regulatory landscape in favor of its cloud services rather than competing on the merits,” Alaily added.

A Rocky History

Microsoft and Google have had a complex and often contentious relationship spanning nearly two decades. The two tech giants have butted heads over competing interests across multiple sectors, including search, advertising and cloud computing.

In December 2023, Google called  for the U.K. antitrust regulator to take action against Microsoft after claiming its business practices had left its cloud rivals at a significant disadvantage.

The push came as Microsoft and AWS continue to face increased scrutiny from global regulators over its share of the cloud services market.

In 2022, Microsoft and AWS controlled  around 80% of the market, with Google trailing behind with between 5-10%.

Last month, Google also filed an antitrust complaint  to the EU claiming that Microsoft was operating with unfair business practices with its Azure cloud platform.

Google and Microsoft remain deeply invested in competing across various fields, and with the growing stakes in AI-driven search and productivity tools, the competition seems likely to get fiercer.

CCN reached out to Google and Microsoft for comment, who did not respond at the time of publication.

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