Alphabet’s Google unit announced on November 28, 2025 that it is withdrawing the antitrust complaint it filed in 2024 against Microsoft’s Azure cloud platform. The complaint had alleged that Microsoft’s licensing practices locked customers into Azure by charging a 400 % markup for Windows Server on rival clouds, a fee not applied to Azure users.
The withdrawal comes as the European Commission has launched a comprehensive investigation under the Digital Markets Act that will examine both Microsoft Azure and Amazon Web Services for potential anti‑competitive behavior. By stepping back from its specific grievance, Google signals a strategic shift toward engaging with the Commission’s broader inquiry rather than pursuing a protracted legal battle over a single licensing issue.
Google Cloud’s performance in the third quarter of 2025 underscores the company’s focus on AI‑driven growth. Revenue rose 35 % year‑over‑year to $15.15 billion, and the backlog expanded to $155 billion, driven largely by demand for AI services and data‑center infrastructure. The company’s cloud business now accounts for roughly 13 % of the global market, trailing Amazon and Microsoft but positioned for rapid expansion as AI adoption accelerates.
Giorgia Abeltino, senior director of government affairs at Google Cloud Europe, said the complaint was filed “to give voice to our customers and partners about the issue of anticompetitive cloud licensing practices” and that Google “stands behind its original arguments.” She added that the company will continue to work with policymakers, customers and regulators across the EU, UK and elsewhere to advocate for choice and openness in the cloud market.
The decision to withdraw the complaint is expected to reduce immediate legal exposure and ease tensions with EU regulators while allowing Google to concentrate resources on scaling its AI‑centric cloud services. It also reflects the broader scrutiny of hyperscalers and signals that Google is prioritizing regulatory engagement over litigation as it seeks to strengthen its competitive position in the cloud market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.