"Shadow campaigns": Microsoft has some harsh words about Google, reigniting cloud rivalry

Microsoft has now criticized Google for allegedly launching an “astroturf” campaign to discredit the company and manipulate regulatory bodies, especially in Europe.

Rima Alaily, the Redmond-based company’s deputy general counsel, penned a blog post to criticize what’s called “shadow campaigns” by the search engine giant. According to Microsoft, Google has staged a smear campaign to undermine its cloud business by hiring a lobbying firm and recruiting small cloud providers as the group’s public face while hiding Google’s involvement.

“Google’s tactics, unfortunately, go beyond creating astroturf lobbying organizations. They’re also speaking out in their own name in disingenuous ways and putting forward paid commentators to discredit us,” says Alaily.

Google’s actions follow its September complaint to the European Union, where it accused Microsoft of charging high fees to use its software, like Windows Server, on other cloud platforms while keeping prices low on its own Azure service.

The company also argues that Microsoft’s policies are anti-competitive and create unfair barriers for customers who want options outside Microsoft’s cloud.

But, Microsoft sees it differently. It believes Google should pay to use its software, likening it to a streaming service paying for the rights to show a movie, even if viewers already own it. This dispute is the latest sign of a renewed rivalry between Microsoft and Google, which ended a six-year truce on legal disputes in 2021.

“Google has also attacked us on topics ranging from cybersecurity to our business in China, pitching stories to reporters, suggesting questions to congressional offices ahead of hearings, and distributing documents in major capitals around the world,” Alaily mentions.