Google reportedly offered EU cloud companies over $500 million to pursue antitrust case against Microsoft

Google has reportedly offered $512 million (€470 million) to a group of EU-based cloud companies in an attempt to derail an antitrust settlement with Microsoft and force a formal complaint to proceed, The attempt failed and the settlement was reached.

Here’s how it happened. A nonprofit trade organization called Cloud Infrastructure Services Providers in Europe (CISPE) filed a complaint with the EU’s antitrust arm, alleging that Microsoft was making it too difficult for business customers to switch providers because the software was tied to Azure cloud services.

This led to a negotiation between CISPE and Microsoft to give the former better access to the latter’s technologies and end the official complaint. That’s when Google, a Microsoft competitor, stepped in. The company reportedly offered the aforementioned financial package to the group, on condition that it pursue the complaint. This is according to confidential documents and people familiar with the matter, all verified by Bloomberg.

The financial package is divided into two parts. The vast majority of Google’s offer consists of software licenses for its cloud technology over five years, worth $495 million or €455 million. The remainder of the amount is offered in cash, as well as a proposal for a long-term partnership. Amazon Web Services (AWS) also contributed financially to Google’s offer, although it is a de facto member of CISPE.

The Google deal, however, was conditional on CISPE pursuing its antitrust complaint against Microsoft in the EU. That didn’t affect the cloud companies that make up CISPE, which are mostly European companies. Instead, the group went in the opposite direction. It struck a similar deal with Microsoft that lets them use enhanced Azure features and gives them the ability to offer Microsoft products and services on their on-premises cloud infrastructures. Microsoft also agreed to pay CISPE about $11 million in cash, according to people familiar with the deal.

“Microsoft’s strategy of paying plaintiffs rather than addressing the merits of their claims is hurting businesses and should fool no one,” said Amit Zavery, head of platform at Google Cloud. “We are exploring our options to continue to fight Microsoft’s anti-competitive licensing to promote choice, innovation and growth in Europe’s digital economy.”

It should be noted that Zavery has not responded to allegations that Google did the exact same thing. The registerA person familiar with the matter called Google’s response “a bit rich.”