Bonum Certa Men Certa

EPO and Microsoft Collude to Break the Law -- Part XIV: When is a Conflict of Interest Not a Conflict of Interest?

Previous parts:



Bill Gates and Campinos



Summary: Could the EPO's increasing reliance on Microsoft involve a conflict of interest?

If Lewis Carroll's Humpty Dumpty had ever managed to visit the bizarre "Wonderland" of the EPO he might have been tempted to formulate a new riddle along the lines of: "When is a conflict of interest not a conflict of interest?"



"To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations."The answer, it seems, is: "When it involves the EPO".

At any rate, this kind of paradoxical "logic" fits the bill when it comes to the EPO's increasing reliance on Microsoft as a provider of IT products and services.

The casual observer looking at the situation from the outside might reasonably conclude that there are a whole host of legitimate concerns including strong indications of an irreconcilable conflict of interest.

To begin with there is Microsoft's chequered history of data protection infractions, anti-trust violations and US FCPA investigations.

But even if one were inclined to ignore all that, there is a more fundamental problem.

To put it in a nutshell: due to the company's position as a significant player in the global IP arena, Microsoft's role as a key IT provider to the EPO seems to be tainted by an inherent conflict of interest.

The situation might not be so precarious if Microsoft was simply a purveyor of computing hardware or a vendor of client-end data processing software for on-site data processing under the control of the EPO.

But the company's role at the EPO has now expanded far beyond that to the provision of cloud-based data processing services, including the processing of much if not all of the EPO's internal communications via Outlook, Microsoft Teams and Skype for Business.

What we have here could be described in simple terms as the large-scale export of operational data, including internal e-mail and video-conferencing communications, from the EPO to an external data processing infrastructure owned by and operated under the control of Microsoft.

It doesn't need an MBA from the Harvard Business School to realise that placing such sensitive internal operational data directly into the hands of a significant player in the global IP arena is a highly questionable undertaking.

Based on its track record to date, EPO management will undoubtedly defend its actions by arguing that Microsoft can be trusted to "do the right thing".

Microsoft will undoubtedly "do the right thing". The only question here is "the right thing for whom?"

Remember that we are talking here about a private for-profit business corporation with a well-documented track record of engaging in anti-competitive practices and other ethically dubious activities. Can any sane person be realistically expected to trust a company with such an egregious track record of data protection infractions, anti-trust violations and US FCPA investigations?

There should be more than enough warning signs here to set off alarm bells in the competent centres of oversight and governance. However, going by Steve Rowan's recent communiqué, nobody in the upper echelons of EPO management seems to be particularly worried.

Unfortunately, past experience over the last decade and a half has shown that the EPO doesn't deal with conflict-of-interest situations very well.

The rot seems to have really set in (for good) back in 2009 when the Administrative Council voted to appoint its then Chairman, Battistelli, as the executive head of the Office. At the time in question, Battistelli was an elected representative for a political party in France, which should have automatically disqualified him from holding such a position in an international organisation. But the Administrative Council remained oblivious to this glaring conflict of interest.

According to the internal EPO rumour mill, Battistelli had his successor as Chair of the Administrative Council, the Danish delegate Jesper Kongstad, quite literally "in his pocket". Kongstad reportedly received a secret "emolument" from Battsitelli's HR department in the form of the equivalent of an EPO principal director's salary -- a generous monthly tax-free sum of five-figure proportions.

One of Battistelli's first moves as President of the Office was to procure the abolition of the independent Audit Committee which reported directly to the Administrative Council.

It's highly ironic that one of the intended functions of the Audit Committee was to advise the Administrative Council about potential conflicts of interest. Now that it has been disbanded, there is no longer anybody around to warn the Council.

Given this background, it's not really surprising that the increasing reliance of the EPO on Microsoft as an IT provider hasn't generated any visible concern in the ranks of the organisation's senior management and governance bodies.

Microsoft bribe
Did "foreign corrupt practices" play a role in the award of EPO contracts to Microsoft? The opacity of the tendering process makes it difficult to give an answer to such questions.



Another remarkable aspect of the present case is the total opacity of the process that led to the award of the contract or contracts for cloud computing services to Microsoft.

It's not clear how much these contracts are worth and whether they were put out to public tender, or whether they were allocated by "direct award".

We also don't know who exactly was responsible for the internal vetting of these procurement decisions, although it seems fair to assume that they were ultimately approved and signed off by the President of the Office, António Campinos.

Whether or not Campinos was properly advised in the matter is of course a completely different question.

Readers of Techrights may recall that back in 2015, reports were circulating ([1] and [2]) about a programme of "closer cooperation" between the EPO's senior management and some of its leading corporate applicants, in particular Microsoft.

This arrangement attracted a lot of criticism at the time and many people quite rightly questioned whether it was appropriate for the EPO to be engaging in what amounted to a favourable treatment of large multinational corporations like Microsoft.

The recent expansion of Microsoft's business relationship with the EPO has caused some people to speculate about whether the latest developments might not have been influenced by a further programme of "enhanced cooperation" involving "foreign corrupt practices".

It is important to emphasise that there is currently no hard evidence of any "kickbacks" or "slush funds" operated by Microsoft at the EPO. For the moment, any such suggestions are based purely on speculation.

On the other hand, Microsoft's well-documented track record in other jurisdictions means that such speculation cannot be dismissed as completely off the wall.

Cxcel issue
The EPO is plagued by an entrenched culture of opacity and non-accountability which makes a credible investigation into suspected irregularities almost impossible



However, the problem here is that the EPO is plagued by such a deeply entrenched culture of opacity and non-accountability that if these procurement decisions had in fact been tainted by corruption, it is highly unlikely that this would ever be investigated and exposed, especially if any members of the senior management were involved.

It is doubtful whether the EPO's internal investigative procedures are really fit for purpose in such cases, and there is no external anti-corruption agency which would be competent to take appropriate action.

To sum up, we are left with a situation in which procurement decisions have been made at the EPO which effectively place sensitive internal operational data directly into the hands of an external IT service provider based in the US and subject to the laws of that jurisdiction -- including the US CLOUD Act of 2018.

In addition to this, the IT service provider in question happens to be a significant player in the global IP game.

At the same time, none of those who bear the ultimate responsibility for these procurement decisions seem to have the slightest concern about what appears to be a clear-cut case of a conflict of interest.

As Lewis Carrol's Alice might have said, "curiouser and curiouser!"

In the final part of the series we will consider whether the EPO's increasing reliance on cloud computing services hosted by Microsoft has effectively led to a sell-out of the organisation's "digital sovereignty".

Recent Techrights' Posts

"A single witness shall not rise up against a person regarding any wrongdoing or any sin that he commits; on the testimony of two or three witnesses a matter shall be confirmed." (Deuteronomy 19-21)
The spouse of Garrett repeatedly points out that Garrett can barely code or can only do so very poorly
Rust People Sabotage Stability for the Sake of a Falsely-Promised 'Security'
Set aside severe performance issues, poor handling of "edge cases", general bugs, lack of compatibility, and even crashes
Huge Strike at the European Patent Office (EPO) This Coming Friday (May 1st)
International Worker’s day
 
SLAPP Censorship - Part 58 Out of 200: 5RB and Brett Wilson LLP Helped Garrett and Graveley Make Equivalent of GAFAM NDAs Superficially 'Enforceable' in the UK, Using Threats
laziness results in many hours and high lawyers' fees
Who Controls Fedora? IBM and GAFAM.
Don't for a moment believe that IBM understands GNU/Linux. We are quite certain nobody in IBM's Board of Directors uses it.
State of Slop About GNU/Linux
As the incentive to publish is reduced (competing with slop is no fun), the effort/money invested in stories goes down
Links 26/04/2026: Korean Inflation, GLP-1 Drugs Linked to Cognitive Impairment, Lithuania's Public Broadcaster LRT Besieged
Links for the day
Hopefully Smooth Sailing in OS Upgrade
There are some contingencies at hand
Links 25/04/2026: "Horrible Economics of AI Are Starting to Come Crashing Down", More Restrictions Placed on Social Control Media
Links for the day
Getting Aggressive Suggestive of Loss - Part IV - Shutting Down My Existence
Would anyone out there tolerate such messages sent from burner accounts?
Gemini Links 26/04/2026: Gemini Movie Database (or GeminiMDB) and Star Trek III
Links for the day
Weeks Before Linux Removed Over 100,000 Lines of Code Due to Slop 'Bug Reports' Microsoft Paid 'Linux' Foundation to Advance Slop in the Name of 'Security'
What can possible go wrong? Both for security and for stability.
Tracking Ages of People
To stay "safe" tell us your age
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, April 25, 2026
IRC logs for Saturday, April 25, 2026
SLAPP Censorship - Part 57 Out of 200: 5RB and Brett Wilson LLP Made the Garrett and Graveley Particulars of Claims a Lot Like Photocopies!
They seem very much irritated that I speak about this
Links 25/04/2026: Nokia Wins Embargo in Kangaroo Court Where Judges Are Salaried Nokia Staff (UPC), Allison Pearson Defamation Case (UK) Succeeds, Smokey Robinson and "Puff Daddy" (US) Fail
Links for the day
Gemini Links 25/04/2026: Weekly Echoes, Gemtext Tables, and Using Offpunk
Links for the day
Corporate Media Did Not Specify What Microsoft Means by "Buyouts" (Layoffs), It May Be Hardly Different From Severance
Time will tell, but investigative journalism hardly exists anymore, so we won't hold our breath
The Corrupt Lecture the Non-Corrupt - Part V - "Diversity" and "Inclusion" at EPO Means Sleeping With Sister of "Cocaine Communication Manager" and Making Them Millionaires
Remember that top applicants or key stakeholders of the EPO are already complaining about a lack of quality
Links 25/04/2026: Fake GAFAM Valuations (Gripping the Market Based on False Accounting), "Evidence Isn't Just for Research", and "Putin Defends Mobile Internet Outages"
Links for the day
Dr. Andy Farnell on Why Calling Slop or Chaff "Hey Hi" (AI) Harm Us All, Except for "Ten or Twenty Rich Industrialists"
"words to avoid"
Internet Trolls Likely Trying to Distract From the Demise of IBM, Problems With Red Hat
there seems to be trolling online aimed at suppressing discussion
Debian Upgrade Coming Up (Soon)
Yesterday we contacted the datacentre staff about it
Getting Aggressive Suggestive of Loss - Part III - Threats From Burner Accounts Formally Treated as a Crime
Countries that cannot preserve freedom from self-censorship are countries where free press ultimately cannot prevail
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 24, 2026
IRC logs for Friday, April 24, 2026
Gemini Links 25/04/2026: 3.4k+ Capsules, Microsoft Layoffs, Call for Nuclear Disarmament, "Internet is Sad and Lonely"
Links for the day
Links 24/04/2026: Zelenskyy Says Ukraine's War Position "Most Stable", Samsung Workers on Strike Due to Pay
Links for the day
Recent Happenings at IBM Reaffirm Rumours About the CEO; He Might be Resigning (or Pushed Out) Soon
If the rumours are true (no, we did not check those tax records for ourselves), it's not unthinkable that IBM is already doing what Apple did months ago
Gemini Links 24/04/2026: Public Reticulum Gateway Node, Smol Computers, and Old E-mail
Links for the day
Links 24/04/2026: Intel Abandoning Computer Freedom (Even Further), Iran Reports That American Software and Hardware Remotely Sabotaged/Hijacked During War
Links for the day
24/7 Wall St. Editor-In-Chief and CEO Calls IBM Is "America’s Worst Big Tech Company", Talent is Leaving, Supposedly Strategic Units Culled
21 hours ago by Douglas A. McIntyre
The Great Wonders of Slop "Efficiency"
Thankfully nothing was lost in the transmission and lots of work (datacentre emissions) got "done"
IBM's Debt Increased Over $5 Billion in 3 Months While IBM Laid Off Many in Europe, US, Confluent, HashiCorp, and Red Hat
An increase of $5,000,000,000+ in debt in just 3 months!
IBMers Expect Another Giant Wave of Layoffs, Talk (and Sing) About the PIPs
The media won't be covering the key facts
Drama at the European Patent Office (EPO) This Week
We'll be covering the EPO quite a lot this weekend and next week
As We Predicted, Francophonie Countries in the EU and Outside the EU Dumping Microsoft for National Security Reasons
We expected Belgium or some other Francophonie place to do so next
Even to Microsoft Insiders It Seems Like XBox Has Already Died or Surrendered to the Japanese Companies
Now the Microsoft layoffs are evident for people to see
EPO Cocainegate Escalates - Part VI - The Strikes Go On and On (Major Strike Today)
We'll be covering this later today in relation to what the Office dubs "ethics"
Absolutely Terrible Journalism About Microsoft Layoffs This Week
7 hours ago by Leila Sheridan
SLAPP Censorship - Part 56 Out of 200: 5RB and Brett Wilson LLP's Copy-Paste Machination for Garrett and Graveley
Here is another straightforward example of their junior barrister overusing copy-paste on his Mac
Getting Aggressive Suggestive of Loss - Part II - Lawyers Are Not "Hired Guns" (and Should Never Act Like Ones)
The matter is being investigated
Nadella is Killing Microsoft. Slop Kills It Even Faster.
A decade from now we'll look back at slop like we look back at skateboards
Huge Microsoft Layoffs Coming Shortly (With Financial Report)
There will be lots of slop layoffs. Be ready. It's a bubble.
Gemini Links 24/04/2026: Data Breaches and Unofficial Gemini Protocol Specification Archive
Links for the day
Microsoft Offers About 10,000 of Its Senior American (Read: Expensive) Workers to be Laid Off
How many slopfarms and media parrots play along?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 23, 2026
IRC logs for Thursday, April 23, 2026