Google reportedly offers €470 million to block Microsoft antitrust pact in EU

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) Google has reportedly offered a group of EU-based cloud companies a deal worth about 470 million euros ($512 million) in a failed bid to block the group’s antitrust settlement with Microsoft (MSFT), Bloomberg News reported.

Last week, the professional body Cloud Infrastructure Service Providers in Europe, or CISPE, said it has reached an agreement with Microsoft to solve issues related to allegedly unfair software licenses for cloud infrastructure providers and their customers.

The move could allow the tech giant to avoid a hefty fine and a new EU investigation. CISPE had argued that Microsoft’s behavior was harming the European cloud ecosystem and depriving customers of choice in their cloud deployments.

However, just days before the deal was disclosed, Google made a counter-offer aimed at convincing CISPE to pursue its complaint with the EU, the report added, citing people familiar with the matter and confidential documents seen by the news agency.

The package included around €455 million in software licenses for Google’s cloud technology over five years, and €14 million in cash, as part of a long-term collaboration with Google, the report added.

The Google deal was subject to the continuation of CISPE’s antitrust complaint to the EU over alleged abusive practices by Microsoft. It was supplemented by around €6 million in financial contributions from Amazon Web Services (AMZN), as part of its ongoing partnership with the group, the report said.

However, the deal did not prevent CISPE, which includes several European companies, from joining. Instead, they chose to accept an offer that allowed them to use the enhanced features of Microsoft Azure, with service providers allowed to offer Microsoft applications and services on their on-premises cloud infrastructures. The report adds that Microsoft’s deal also comes with a €10 million financial boost.

AWS said it is a founding member of CISPE and has regularly made voluntary contributions to the organization. “Companies across all major industries have a long history of supporting trade associations in similar ways,” AWS added.

Google stressed that it has long supported fair software licensing principles and that the company is discussing joining CISPE to combat anti-competitive licensing practices, the report added, citing a Google spokesperson.

A CISPE spokesperson noted that alternative options to accepting the Microsoft deal had been offered to members, but they declined to confirm the terms of the offer, the report noted.

Following the settlement with Microsoft and CISPE, Google Cloud chief Amit Zavery reportedly said the company would explore options in its battle against Microsoft’s licensing practices.