BRUSSELS — Google on Friday formally withdrew its antitrust complaint against Microsoft over cloud computing practices, a week after the European Commission (EC) launched an investigation into market dominance in the cloud sector.
The move signals a shift from company specific grievances to broader regulatory scrutiny under Europe’s Digital Markets Act.
Google said it was ending its complaint against Microsoft’s cloud services in light of the EC’s announcement to examine the cloud industry as a whole.
“We continue to collaborate with policymakers, customers and regulators across the EU, the UK, and elsewhere to promote choice and openness in the cloud market,” said Giorgia Abeltino, senior director of Google Cloud Europe, in a blog post.
In 2024, Google had filed a complaint with the EC, alleging that Microsoft’s Azure platform used licensing practices that restricted customer mobility and disadvantaged competitors.
Google claimed these practices effectively locked businesses into Microsoft’s ecosystem, creating a barrier for rivals in the European cloud market.
The EC acts as Europe’s antitrust authority and is responsible for ensuring fair competition. Last week, it launched a sector wide probe into cloud computing to determine if leading platforms like Microsoft Azure and Amazon Web Services (AWS) are reinforcing their market power and limiting customer choice.
Amazon currently leads the global cloud market with an estimated 30 percent share, followed by Microsoft at 20 percent and Google at 13 percent.
Analysts say the EC investigation could impact the strategies of the top providers, especially if gatekeeper status under the Digital Markets Act is applied.
Regulatory experts suggest Google’s withdrawal may be strategic. “Google is essentially allowing the EC to take a broader view of the market rather than pursuing a narrow complaint,” said Tomas Richter, a Brussels based competition analyst.
“By focusing on systemic issues, regulators can evaluate whether certain practices lock clients into a single cloud provider.”
A spokesperson for the European Cloud Alliance, an industry group representing mid size providers, said the investigation could create more opportunities for smaller firms.
If the EC enforces interoperability and portability, businesses will have real choices instead of being trapped in a single platform, the spokesperson said.
Global cloud computing is dominated by a few key players. AWS holds the largest share at 30 percent, followed by Microsoft Azure at 20 percent and Google Cloud at 13 percent.
Analysts note that the combined dominance of AWS and Microsoft could limit competition, especially in enterprise services and AI infrastructure.
According to recent market reports, Europe has seen growing reliance on cloud services, with public sector projects and private enterprises increasingly adopting cloud solutions.
This reliance has prompted the EC to examine whether dominant players can influence pricing, limit interoperability, or create vendor lock in situations that hurt competition.
In Berlin, IT consultant Maria Lehmann said Google’s withdrawal is a positive signal. “Smaller cloud providers often struggle to compete because switching between major platforms is costly and complex,” she said.
“If regulators enforce fairness, we may see more innovation and better services for clients.” A mid sized software firm in Paris, which hosts client data on Google Cloud, welcomed the sector wide review.
“Microsoft and AWS have huge influence in Europe, and regulatory oversight could finally give clients the flexibility to choose providers without heavy penalties,” the firm’s CTO said.
The EC aims to complete its cloud market investigations within roughly twelve months. If Microsoft and Amazon are designated as gatekeepers under the Digital Markets Act, they could face obligations to improve interoperability, allow data portability, and avoid restrictive licensing practices.
Experts note that the outcome could reshape Europe’s cloud landscape, enabling smaller providers to compete more effectively.
However, major cloud firms may argue that stricter regulations could hinder investments in innovation and limit integrated services that clients currently rely on.
Google’s withdrawal of its antitrust complaint against Microsoft signals a pivot toward broader regulatory oversight of the cloud sector in Europe.
The EC’s investigation under the Digital Markets Act could determine how major providers operate, how clients switch between platforms, and whether Europe’s cloud ecosystem becomes more competitive.
The sector wide scrutiny marks a critical moment for cloud computing regulation, with implications for businesses, consumers, and technological innovation across the continent.
