Google allegedly sought to derail Microsoft antitrust pact with deal worth €470m

Google offered CISPE €470m in software licences and cash so it would continue with its EU antitrust complaint against Microsoft. 

Google offered a group of EU-based cloud firms a package worth about €470m in a failed attempt to derail their antitrust settlement with Microsoft that freed the US software giant from a potentially costly EU case.

Cloud Infrastructure Services Providers in Europe, or CISPE, last week ditched a complaint at the EU’s antitrust arm over Microsoft’s software licensing processes after brokering a deal to get fairer access to the US firm’s technologies.

CISPE had previously argued Microsoft made it too difficult for customers to change cloud providers by tying its business software to its Azure cloud services.

But just days before the agreement was announced, Google made a counter offer designed to convince CISPE to maintain their EU complaint, according to confidential documents seen by Bloomberg and people familiar with the matter, who spoke on condition of anonymity.

The package totaled approximately €455m worth of software licences for Google’s cloud technology over five years as well as €14m in cash, as part of a long-term partnership proposal, according to the documents.

Google’s offer was conditional on CISPE maintaining its EU antitrust complaint into Microsoft’s allegedly abusive activities, and was also boosted by about €6m in financial contributions from Amazon Web Services (AWS), as part of its ongoing partnership with the association, the people said.

But the offer didn’t sway CISPE’s membership, which includes a swathe of European firms. Instead, they opted to take up an offer allowing them to use enhanced Microsoft Azure features — with service providers permitted to offer Microsoft applications and services on their local cloud infrastructures.

People familiar with the agreement said that Microsoft’s offer also came with a €10m contribution. 

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

A Google spokesperson said that it has long supported the principles of fair software licensing and that the firm was having discussions about joining CISPE, to fight anti-competitive licensing practices.

A CISPE spokesperson said the association’s members were presented with alternative options to accepting the Microsoft deal, but they refused to confirm any of the terms of the deal.

Bloomberg