The European Union has long been known for its aggressive regulatory stance toward big U.S. tech companies, and now, Microsoft and Google seem to be turning these policies into weapons in their ongoing rivalry. As Europe tightens scrutiny on anti-competitive practices in digital markets, both companies are using the regulatory climate to gain a competitive edge.
Microsoft has accused Google of launching a covert lobbying effort to undermine Azure through the newly established Open Cloud Coalition, while Google positions the coalition as a response to Microsoft’s restrictive cloud licensing policies.
These developments highlight a new dimension in the cloud wars, where the battlefield is not just market share but also the favor of regulators and policymakers. With Europe’s stringent antitrust rules in the spotlight, companies appear to be leveraging legal complaints and lobbying groups to reshape the competitive landscape to their advantage.
Why It Matters: As Europe becomes more assertive in regulating cloud services, tech giants like Microsoft and Google seem to be using this environment to further their strategic goals. While these regulations aim to promote fair competition, they risk becoming tools for business warfare, ultimately influencing how the cloud sector evolves in the region and potentially limiting genuine innovation.
- Europe’s Regulatory Pressure as a Business Tool: The European Union and U.K. have launched investigations into anti-competitive practices, including Microsoft’s cloud licensing policies and vendor lock-in strategies. These inquiries create opportunities for competitors to pressure rivals using regulatory channels.
- Microsoft and Google’s Tactical Use of Complaints: Microsoft recently settled an antitrust complaint with CISPE, a trade group including AWS, but Google remains critical of the deal. Google’s decision to back the Open Cloud Coalition appears to be a strategic move to lobby for tougher rules targeting Microsoft’s cloud dominance.
- The Formation of the Open Cloud Coalition: Google-backed OCC aims to challenge Microsoft’s grip on the market by advocating for openness, multicloud flexibility, and interoperability. Microsoft, however, claims that Google is using the coalition as an “astroturf” campaign to mislead regulators and customers.
- Regulators Caught in the Middle: With a new European Commission taking office by year’s end, the cloud market is under greater scrutiny than ever. However, regulators must now navigate the complexities of distinguishing between genuine advocacy and business maneuvering.
- Potential Risks to Innovation and Customer Choice: While regulations seek to prevent anti-competitive behavior, the cloud wars could lead to overregulation, limiting innovation and creating fragmentation in the market. Multicloud adoption may become both a business strategy and a regulatory requirement, reshaping how companies deliver cloud services across Europe.
Google backs new Open Cloud Coalition to lobby across Europe – TechRadar
