Google announced on November 28 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 tied Azure customers to Microsoft software, effectively locking them into the Azure ecosystem and limiting competition in the EU cloud market.
The complaint specifically cited Microsoft’s bundling of Azure with Windows Server and the imposition of significant price markups on Azure customers who used Microsoft software on competing cloud platforms. Google’s senior director of government affairs, Giorgia Abeltino, said the complaint was intended to give voice to customers and partners who felt the licensing model was anti‑competitive. Abeltino added that Google was withdrawing the complaint “in light of the recent announcement that the commission will assess problematic practices affecting the cloud sector under a separate process.”
The European Commission has launched a sector‑wide investigation under the Digital Markets Act, which will evaluate whether major cloud providers such as Microsoft Azure and Amazon Web Services qualify as “gatekeepers.” The investigation will examine interoperability, data access, and bundling practices across the entire cloud market, rather than focusing on a single provider. Google’s withdrawal signals that it prefers the Commission to address the broader market dynamics through this DMA‑driven probe rather than pursuing a standalone case against Microsoft.
Microsoft has not yet issued a formal statement on Google’s withdrawal, but the move removes a direct regulatory threat for the company in the EU. Analysts note that the withdrawal reduces the likelihood of a costly antitrust proceeding for Microsoft, allowing it to continue expanding Azure’s market share without the immediate pressure of a specific complaint. The broader DMA investigation, however, still poses a potential risk if Microsoft is found to meet the gatekeeper criteria and is subject to new obligations.
The combined market share of Amazon, Microsoft, and Google in the European cloud sector is roughly 70%, with Amazon leading at 30%, Microsoft at 20%, and Google at 13%. The Commission’s investigation aims to ensure fair competition, interoperability, and transparency across this critical sector. By withdrawing its complaint, Google positions itself to observe how the DMA framework will shape the competitive landscape, while Microsoft benefits from a temporary regulatory reprieve amid a broader industry review.
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