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Microsoft accuses Google of secretly funding regulatory astroturf campaign


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accuses
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of secretly funding regulatory astroturf campaign

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is accusing
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of funding a proxy campaign designed to discredit it in the eyes of regulatory authorities and policymakers in the ********* Union and beyond. In a
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penned by Rima Alaily, the company’s deputy general counsel,
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claims the search giant has gone to “great lengths to obfuscate its involvement, funding and control” of the Open Cloud Coalition, a group of “cloud service providers, industry leaders and stakeholders” that says it’s committed to advocating for a “fair, competitive, and open cloud services industry across the *** and EU.”

According to

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,
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hired a lobbying agency in Europe to create and operate the organization, and recruited “a handful of” ********* cloud providers to appear as the public face of the soon-to-launch campaign. The company says that
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plans to “present itself as a ********* member” of the Open Cloud Coalition, rather than its leader and primary funder. As one example,
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points to a
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that makes no mention of the group’s claimed affiliation to
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. It also notes the involvement of Nicky Steward, who co-wrote a complaint against
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and
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Web Services as part of the ***’s ongoing antitrust investigation into the cloud services market.

“It ******** to be seen what

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offered smaller companies to join, either in terms of cash or discounts,”
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says. It adds that one of the cloud providers
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approached about joining the Open Cloud Coalition claims that the company will direct the group to ******* “
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’s cloud computing business in the ********* Union and the ******* Kingdom.”

Engadget was unable to independently verify

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’s claims.

“We’ve been very public about our concerns with

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’s cloud licensing. We and many others believe that
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’s anticompetitive practices lock-in customers and create negative downstream effects that impact cybersecurity, innovation, and choice,” a
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spokesperson told Engadget, and pointed us to
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on the matter.

As for why

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would potentially go to the extraordinary lengths of funding an astroturf campaign,
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points to the recent uptick in regulatory scrutiny of the company’s search, advertising and mobile app store businesses. By
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’s count,
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faces at least 24 antitrust investigations globally, including a Department of Justice probe that could see the potential break up of the company.

“Never in the past two decades have

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’s search, digital advertising, and mobile app store monopolies faced such a concerted and determined threat as they do today.” Alaily writes. “At a time when
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should be focused on addressing legitimate questions about its business, it is instead turning its vast resources towards tearing down others. It is disappointing that, with the foundation of their business facing jeopardy, they have sought to bolster their cloud computing service –
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Cloud Platform – by attacking ours.”

The accusations come after

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had reportedly attempted to derail an antitrust settlement
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had negotiated with the Cloud Infrastructure Services Providers in Europe (CISPE). In July, Bloomberg
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that
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had offered the group €470 million to go forward with litigation against its rival, an overture CISPE
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.

As revenue growth from digital ads has slowed for

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in recent years, the company has increasingly turned to the cloud market to pick up the slack. In 2023,
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’s cloud business broke even for the first time. More recently, the unit generated a $900 million profit in the first quarter of this year.

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#

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#accuses #
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#secretly #funding #regulatory #astroturf #campaign

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