Technology Microsoft makes a $21.7 million deal with European cloud companies to try to avoid EU probe

Gandalf_The_Grey

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A new settlement between Microsoft and a group of cloud server companies in Europe could help the company keep the European Union from launching a formal investigation into Microsoft's cloud division.

Reuters reports that the Association of Cloud Infrastructure Service Providers of Europe (CISPE) has accepted a $20 million euro ($21.7 million) settlement from Microsoft. The CISPE includes one of Microsoft's big cloud competitors, Amazon Web Services, as one of its members, along with a number of smaller cloud companies.

Previously, the CISPE sent a complaint to the EU's regulatory body, the European Commission, claiming that Microsoft's cloud business practices were negatively affecting competition from other companies.

TechCrunch reports that in addition to the monetary settlement, Microsoft has agreed to let the members of the CISPE run Microsoft's software.
 

cartaphilus

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So basically companies complained that MS used their financial backing to price out the competition and MS answer to the accusations is to price out the accusation. Got it. It's all clear now. Problem solved. Nothing to see here.
 

Brahman

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So basically companies complained that MS used their financial backing to price out the competition and MS answer to the accusations is to price out the accusation. Got it. It's all clear now. Problem solved. Nothing to see here.
So they took the money today to keep their mouth shut and gave free reign to MS to exploit their user base. Nice strategy.
 

Gandalf_The_Grey

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Google’s $500M effort to wreck Microsoft EU cloud deal failed, report says
Google tried to derail a Microsoft antitrust settlement over anticompetitive software licensing in the European Union by offering a $500 million alternative deal to the group of cloud providers behind the EU complaint, Bloomberg reported.

According to Bloomberg, Google's offer to the Cloud Infrastructure Services Providers in Europe (CISPE) required that the group maintain its EU antitrust complaint. It came "just days" before CISPE settled with Microsoft, and it was apparently not compelling enough to stop CISPE from inking a deal with the software giant that TechCrunch noted forced CISPE to accept several compromises.

Bloomberg uncovered Google's attempted counteroffer after reviewing confidential documents and speaking to "people familiar with the matter." Apparently, Google sought to sway CISPE with a package worth nearly $500 million for more than five years of software licenses and about $15 million in cash.

But CISPE did not take the bait, announcing last week that an agreement was reached with Microsoft, seemingly frustrating Google.
 

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