TLDR
- Google dropped its European Union antitrust complaint against Microsoft’s cloud business on Friday
- The move follows EU regulators opening a separate cloud sector investigation last week
- Google had accused Microsoft of using anti-competitive tactics to trap customers in Azure
- Amazon controls 30% of the cloud market, Microsoft has 20%, and Google holds 13%
- The EU probe could force Microsoft and Amazon into gatekeeper status within one year
Google withdrew its antitrust complaint against Microsoft’s cloud operations on Friday. The tech company made this move one week after European Union regulators started their own investigation.
Google filed the original complaint with the European Commission in 2024. The company said Microsoft used unfair methods to keep customers stuck on its Azure platform.
Giorgia Abeltino runs Google Cloud Europe as senior director. She explained the decision in a blog post published Friday.
“We are withdrawing it in light of the recent announcement that the EC will assess problematic practices affecting the cloud sector under a separate process,” Abeltino wrote. Google will continue pushing for more competition in cloud markets across the EU and UK.
Cloud Market Power Dynamics
The cloud computing sector has three clear leaders. Amazon commands the largest slice with 30% market share.
Microsoft comes in second place with 20%. Google trails both competitors with just 13% of the market.
Google’s complaint withdrawal doesn’t mean the company has dropped its concerns. The decision reflects confidence that EU regulators will examine the same issues through their formal process.
The European Commission functions as the EU’s main competition authority. Officials are now investigating whether certain cloud sector practices strengthen the market positions of Microsoft Azure and Amazon Web Services.
Potential Regulatory Consequences
The investigation should conclude within twelve months. Results could lead to both Microsoft and Amazon receiving gatekeeper designations under the Digital Markets Act.
Gatekeeper status means strict compliance requirements. Companies must follow regulations designed to increase market competition and provide customers with more alternatives.
The Digital Markets Act represents Europe’s push to regulate dominant tech platforms. The law prevents large companies from using their market power to shut out smaller competitors.
Microsoft’s Azure has grown quickly in recent years. The platform competes head-to-head with Amazon Web Services and Google Cloud Platform for corporate clients.
EU regulators began their investigation on November 21. Google withdrew its complaint seven days later on November 28.
Google stated it will keep advocating for open cloud markets. The company plans to engage with regulators, policymakers, and customers throughout Europe.
The Commission will examine specific cloud industry practices. Investigators want to determine whether these practices unfairly benefit the largest providers.
Google’s original complaint focused on customer lock-in tactics. The company claimed Microsoft made it difficult and expensive for businesses to switch cloud providers.
The EU investigation could transform how cloud services operate in Europe. Microsoft and Amazon may face new restrictions if regulators find anti-competitive behavior.
Both companies will undergo regulatory scrutiny throughout 2026. The probe’s findings could require major changes to their cloud service offerings and pricing structures.
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