Setback for Google: CISPE opts for Microsoft deal despite lucrative counter-offer

In a surprising turn in the European cloud market, the Association of European Cloud Infrastructure Service Providers (CISPE) has decided against a generous offer from Google and instead reached a long-awaited antitrust settlement with Microsoft. Google had attempted to persuade the CISPE association with a package valued at approximately 470 million euros to maintain their complaint against Microsoft's allegedly anti-competitive licensing practices. The offer included 455 million euros in software licenses plus 14 million euros in cash and would have involved a five-year partnership with Google. However, despite the tempting offer, CISPE members opted to accept Microsoft's proposal, which grants them fairer access to the US company's technologies. This decision followed an agreement allowing providers to offer Microsoft's applications on their local cloud infrastructures, along with 10 million euros in financial support from Microsoft. Amazon Web Services (AWS), a founding member of CISPE, had also tried to exert pressure and supported Google with an additional 6 million euros. Despite this combined offer, Microsoft remains CISPE's preferred partner. Google's cloud division recently reported remarkable results, posting a profit of 900 million US dollars in the first quarter, surpassing analysts' forecasts. Increasing regulatory scrutiny over Microsoft's activities could further benefit Google if EU investigations lead to potential competition breaches. A Google spokesperson emphasized the company's long-term commitment to fair licensing practices and discussed the possibility of CISPE membership. Both CISPE and Microsoft provided reserved comments on the exact terms of the agreement, while Microsoft's President Brad Smith expressed his delight at resolving the EU's antitrust concerns. Although this settlement clears a legal hurdle for Microsoft, the company remains under the watchful eye of EU competition authorities, particularly regarding its 13 billion US dollar investment in OpenAI and the integration of Teams with other business applications.