Google Rear Ends Microsoft on an EU Information Highway

September 25, 2024

green-dino_thumb_thumb_thumb_thumb_t[2]_thumbThis essay is the work of a dumb dinobaby. No smart software required.

A couple of high-technology dinosaurs with big teeth and even bigger wallets are squabbling in a rather clever way. If the dispute escalates some of the smaller vehicles on the EU’s Information Superhighway are going to be affected by a remarkable collision. The orange newspaper published “Google Files Brussels Complaint against Microsoft Cloud Business.” On the surface, the story explains that “Google accuses Microsoft of locking customers into its Azure services, preventing them from easily switching to alternatives.”

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Two very large and easily provoked dinosaurs are engaged in a contest in a court of law. Which will prevail, or will both end up with broken arms? Thanks, MSFT Copilot. I think you are the prettier dinosaur.

To put some bite into the allegation, Google aka Googzilla has:

filed an antitrust complaint in Brussels against Microsoft, alleging its Big Tech rival engages in unfair cloud computing practices that has led to a reduction in choice and an increase in prices… Google said Microsoft is “exploiting” its customers’ reliance on products such as its Windows software by imposing “steep penalties” on using rival cloud providers.

From my vantage point this looks like a rear ender; that is, Google — itself under considerable scrutiny by assorted governmental entities — has smacked into Microsoft, a veteran of EU regulatory penalties. Google explained to the monopoly officer that Microsoft was using discriminatory practices to prevent Google, AWS, and Alibaba from closing cloud computing deals.

In a conversation with some of my research team, several observations surfaced from what I would describe as a jaded group. Let me share several of these:

  1. Locking up business is precisely the “game” for US high-technology dinosaurs with big teeth and some China-affiliated outfit too. I believe the jargon for this business tactic is “lock in.” IBM allegedly found the play helpful when mainframes were the next big thing. Just try and move some government agencies or large financial institutions from their Big Iron to Chromebooks and see how the suggestion is greeted.,
  2. Google has called attention to the alleged illegal actions of Microsoft, bringing the Softies into the EU litigation gladiatorial arena.
  3. Information provided by Google may illustrate the alleged business practices so that when compared to the Google’s approach, Googzilla looks like the ideal golfing partner.
  4. Any question that US outfits like Google and Microsoft are just mom-and-pop businesses is definitively resolved.

My personal opinion is that Google wants to make certain that Microsoft is dragged into what will be expensive, slow, and probably business trajectory altering legal processes. Perhaps Satya and Sundar will testify as their mercenaries explain that both companies are not monopolies, not hindering competition, and love whales, small start ups, ethical behavior, and the rule of law.

Stephen E Arnold, September 25, 2024

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