Google's €470 Million Offer to EU Cloud Firms Fails to Derail Microsoft Antitrust Settlement

Cloud Infrastructure Services Providers in Europe (CISPE) had initially raised concerns over Microsoft's software licensing practices

In a dramatic turn of events, Google attempted to sway European Union-based cloud firms with a substantial offer worth approximately €470 million ($512 million) to sustain their antitrust complaint against Microsoft. This move aimed to thwart a settlement that freed Microsoft from a potentially costly EU antitrust case.

Cloud Infrastructure Services Providers in Europe (CISPE) had initially raised concerns over Microsoft's software licensing practices, alleging that the US tech giant unfairly tied its business software to its Azure cloud services, making it difficult for customers to switch providers. However, last week, CISPE abandoned its complaint after reaching an agreement to secure fairer access to Microsoft's technologies.

Just days before the announcement of this agreement, Google presented CISPE with a counteroffer. Google offered a package that comprised about €455 million in software licensing for its cloud technology spread over five years as well as €14 million in cash, according to confidential documents seen by Bloomberg and people familiar with the case. This long-term partnership proposal also included about €6 million in financial contributions from Amazon Web Services (AWS), Google's partner in this endeavor.

Google's offer was contingent on CISPE maintaining its EU antitrust complaint against Microsoft, highlighting the competitive tensions within the cloud services market. In spite of this substantial offer, CISPE chose to reach a settlement with Microsoft, enabling the latter to avoid additional antitrust investigation. This settlement echoes a similar 2004 incident where Microsoft paid $9.75 million to a Google-backed group to drop a complaint before EU regulators.