Sources: Google offered CISPE ~€455M worth of Google cloud licenses and €14M in cash in a deal for CISPE to maintain its antitrust complaint against Microsoft (Samuel Stolton/Bloomberg)
In a surprising move, Google has reportedly offered to pay the Cloud Infrastructure Services Providers Europe (CISPE) a significant amount of money to drop its antitrust complaint against Microsoft, according to sources close to the matter.
According to Bloomberg, Google has offered CISPE around €455 million worth of Google cloud licenses and an additional €14 million in cash. The offer is believed to be a significant portion of the revenue that CISPE’s members generate each year, making it a substantial offer to persuade the group to abandon its complaint.
CISPE, a non-profit organization that represents small and medium-sized cloud computing providers, filed an antitrust complaint against Microsoft with the European Commission in 2020. The complaint alleged that Microsoft’s practices in the cloud market were creating a “predatory” environment that stifled competition.
The offer from Google is believed to be a bid to neutralize the complaint and avoid any potential antitrust action against Microsoft. CISPE has not yet commented on the offer, but it is likely to be a major factor in the organization’s decision to proceed with the complaint.
The deal would be significant for both Google and Microsoft, as it would allow Google to maintain its position in the cloud market without facing potential antitrust scrutiny. Microsoft, on the other hand, would avoid the potential consequences of an antitrust complaint, including fines and potential restrictions on its business practices.
The use of cloud licenses as a key component of the offer is also noteworthy, as it highlights the importance of cloud computing in the tech industry. As more companies move their operations to the cloud, the competition between cloud providers has intensified, leading to increased scrutiny of their business practices.
The offer from Google is also a testament to the growing importance of the cloud market in the tech industry. The deal is a significant development in the ongoing competition between Google and Microsoft, and could have far-reaching implications for the future of the cloud computing landscape.
It remains to be seen whether CISPE will accept the offer, but the magnitude of the deal is likely to be a major factor in the organization’s decision. With tens of millions of dollars on the line, it’s likely that CISPE will carefully consider the offer and weigh the potential consequences of dropping its complaint against Microsoft.