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Microsoft Accuses Google of Running “Shadow Campaigns” to Influence European Regulators

/in /tarafından

Microsoft publicly accused Google of orchestrating “shadow campaigns” in Europe, claiming Google is backing a consortium to sway European regulators against Microsoft. According to a blog post by Microsoft’s attorney Rima Alaily, Google allegedly hired DGA Group, a consulting firm, to form the Open Cloud Coalition, which includes certain European cloud companies.

Alaily asserted that the coalition is an “astroturf group” organized to undermine Microsoft and influence policymakers under the guise of promoting “a fair, competitive, and open cloud services industry.” Alaily linked a flyer for the Open Cloud Coalition, which aims to address competition in cloud services across the UK and EU, with Google reportedly backing it financially and providing resources.

Google, under increasing scrutiny in both Europe and the U.S. — where it faces its second antitrust trial — responded, emphasizing its own concerns over Microsoft’s alleged anticompetitive practices. Google maintains that Microsoft’s licensing agreements for Windows Server create unfair conditions that limit customer choice and stifle innovation, impacting both cybersecurity and market competitiveness. In September, Google filed a complaint with the European Commission, specifically calling out Microsoft’s Windows Server licensing practices. Microsoft counters that its clients benefit by saving up to 36% when using Windows Server on its own cloud infrastructure compared to Amazon’s.

Alaily further alleged that Google has repeatedly aimed to disrupt Microsoft’s standing in both the U.S. and Europe. She highlighted Google’s financial support for the Coalition for Fair Software Licensing, which in 2023 petitioned the U.S. Federal Trade Commission to investigate Microsoft’s cloud licensing practices. Additionally, Alaily claimed that Google offered $500 million to members of the Cloud Infrastructure Services Providers in Europe to oppose a potential antitrust settlement related to Microsoft, which eventually was resolved in July.

The two tech giants, competing for dominance in cloud services, online advertising, and productivity software, continue to clash, with Google’s alleged covert campaigns adding fuel to their intensifying rivalry.

 

Google Seeks to Delay US Judge’s App Store Ruling Amid Security Concerns

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Google has requested a California federal judge to delay the implementation of a recent court order that mandates opening its Google Play store to increased competition. In a filing submitted on Friday night, Google argued that the ruling, set to take effect on November 1, would introduce “serious safety, security, and privacy risks” to the Android ecosystem. The company, a subsidiary of Alphabet, also emphasized that the order could harm its business operations, prompting it to ask for a pause while it appeals the decision.

The ruling, handed down by U.S. District Judge James Donato on October 7, stems from a lawsuit filed by Epic Games, the developer of Fortnite. Epic successfully argued that Google was monopolizing the Android app marketplace, controlling how users download apps and make in-app payments. The court agreed, declaring that Google’s practices unfairly restricted competition and violated antitrust laws.

The injunction specifically requires Google to:

  1. Allow Android users to download apps from competing third-party platforms or stores.
  2. Permit the use of alternative in-app payment methods.
  3. Prohibit Google from paying device manufacturers to pre-install its Play Store.
  4. Stop revenue-sharing agreements with other app distributors.

If Judge Donato denies Google’s request to stay the injunction, the company plans to ask the 9th U.S. Circuit Court of Appeals to halt the order during its appeal process. Google already filed its notice of appeal to the 9th Circuit on Thursday. The appeals court will ultimately decide on the validity of Donato’s ruling as Google seeks to overturn the antitrust verdict.

This legal battle is one of several high-profile antitrust cases aimed at limiting the dominance of tech giants in digital marketplaces. While Epic Games celebrates this as a victory for competition and developers, Google maintains that such changes could undermine the security and privacy protections it has built into its app store and Android ecosystem.

US Considers Breaking Up Google After Landmark Case

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The US Department of Justice (DoJ) is weighing the possibility of breaking up Google, following a landmark ruling in August that found the company had maintained an illegal monopoly in online search. This potential move could fundamentally alter how major technology companies operate. The DoJ has suggested “structural requirements” to prevent Google from using its products—like Chrome, Play Store, and Android—to promote its search engine and related services.

Google has warned that such measures could have unintended consequences for both US businesses and consumers. In response to the government’s proposals, Lee-Anne Mulholland, Google’s vice president of regulatory affairs, labeled the move as “government overreach.” Google is expected to submit its own proposals for remedies by December 20, while the DoJ is preparing a more detailed plan by November 20.

The court decision, reached after a 10-week trial, marked a significant blow to Alphabet, Google’s parent company. Prosecutors successfully argued that Google had paid billions of dollars to firms such as Apple and Samsung to ensure it remained the default search engine. Google’s defense claimed that its popularity was driven by consumer choice, as users preferred its services.

This case is part of a broader government effort to regulate major tech firms like Meta (Facebook’s parent company), Amazon, and Apple, all of which face similar antitrust lawsuits. US authorities are aiming to increase competition within the tech industry, targeting monopolistic practices that stifle innovation and limit consumer choice.