Brussels: Google, the technology arm of Alphabet Inc., has formally withdrawn its antitrust complaint against Microsoft, days after the European Commission (EC) opened a broader investigation into competition in the cloud computing sector. The move reflects a shift in strategy, as Google acknowledges that the EC’s comprehensive inquiry is likely to encompass the concerns raised in its initial complaint.
The original complaint, lodged in 2022, alleged that Microsoft exploited its dominant position through products like Windows Server and Microsoft Office to “lock in” customers to its Azure cloud platform. Google argued that these practices hindered businesses from switching to competing cloud services, thereby limiting competition in the European cloud market. Analysts noted that such complaints have long been a hallmark of tensions between major tech companies operating in overlapping cloud and software markets.
With the EC’s current probe now underway, Google stated that the withdrawal of its complaint is a pragmatic decision. A senior Google Cloud official said the company believes the investigation will address systemic market issues more effectively than a standalone complaint. Google emphasized its commitment to promoting openness, user choice, and fair competition in cloud computing across Europe and beyond, signaling a collaborative approach with regulators rather than an adversarial one.
The European cloud market is dominated by Amazon Web Services (AWS), which holds approximately 30% of market share, followed by Microsoft Azure at around 20%, and Google Cloud at roughly 13%. The EC’s probe could have far-reaching implications, including the potential designation of leading cloud providers as “gatekeepers” under the EU’s Digital Markets Act. Such a status would impose stricter rules on these companies, aimed at ensuring greater competition, enhancing data portability, and reducing barriers for smaller cloud providers.
Industry observers suggest that the EC’s investigation could reshape the European cloud landscape, affecting how contracts, licensing agreements, and customer data management are handled. If major providers like Microsoft Azure and AWS are classified as gatekeepers, it could open opportunities for smaller competitors while enforcing new standards of fairness and transparency in the cloud sector. For Google, the withdrawal of its complaint represents not just a tactical decision but also an acknowledgment of the growing regulatory focus on maintaining a balanced and competitive cloud ecosystem.