Google has withdrawn its antitrust complaint against Microsoft over cloud computing practices in the European Union. This move comes just days after EU regulators started a fresh probe into whether Microsoft holds too much power in the cloud market, announced on November 28, 2025.
Background on Google’s Original Complaint
Google filed the complaint last year, claiming Microsoft used unfair tactics to lock customers into its Azure cloud service. The search giant pointed to changes in Microsoft’s licensing rules from 2019 that made it costlier for businesses to run Windows Server on rival clouds like Google Cloud.
These changes reportedly added over one billion euros in extra costs for EU companies, based on industry research. Google also highlighted issues like limited access to software updates and barriers to smooth data transfers between clouds.
Experts say such practices can stifle competition in a fast-growing sector where businesses rely on cloud services for everything from data storage to running apps.
Details of the New EU Investigation
The European Commission launched its investigation under the Digital Markets Act, a 2022 law aimed at curbing the dominance of big tech firms. The probe will check if Microsoft’s Azure qualifies as a “core platform service,” which would mean stricter rules to promote fair play.
If designated, Microsoft might have to make it easier for users to switch providers and share data. This follows similar scrutiny of other tech giants, reflecting the EU’s push for a more open digital economy.
The investigation could last several months, with potential fines or required changes if violations are found. Regulators are gathering input from industry players to build a full picture.
Regulators noted that cloud services are vital for Europe’s economy, supporting sectors like finance and healthcare.
Google’s Reasons for Withdrawing
Google explained the withdrawal in a blog post, stating the new EU probe addresses the same concerns through a separate process. A company executive said they would keep working with officials to push for more choice in the cloud market.
This decision avoids a drawn-out legal battle while letting regulators take the lead. It shows Google’s strategy to focus on broader advocacy rather than a single complaint.
Analysts see this as a smart move, given the EU’s active role in tech regulation. Google has faced its own antitrust cases in the past, so aligning with ongoing probes might strengthen its position.
Cloud Market Shares and Competition
The cloud industry is booming, with global spending expected to hit $680 billion in 2025, up from previous years. Amazon Web Services leads the pack, but Microsoft and Google are key players chasing growth.
Here’s a quick look at the top providers’ market shares based on recent data:
| Provider | Market Share | Key Strength |
|---|---|---|
| Amazon | 30% | Broad services and innovation |
| Microsoft | 20% | Integration with Windows |
| 13% | AI and data analytics focus |
These figures highlight the intense rivalry, where even small advantages can shift billions in revenue.
Competition has heated up with rising demands for AI-driven cloud tools. Microsoft’s partnerships, like with OpenAI, give it an edge, while Google invests heavily in its own tech.
Broader Implications for Tech Giants
This case fits into a larger wave of antitrust actions worldwide. In the US, both companies face scrutiny, with Google dealing with a major breakup order in its search business from earlier in 2025.
The EU’s Digital Markets Act has already forced changes at firms like Apple and Meta, promoting fairer app stores and data practices. If Microsoft gets hit with new rules, it could level the playing field for smaller cloud providers.
Businesses benefit from more options, potentially lowering costs and sparking innovation. However, critics worry over-regulation might slow tech progress in Europe.
Key potential outcomes include:
- Easier switching between cloud providers for users.
- Reduced vendor lock-in, saving companies money.
- Stronger enforcement of fair competition rules across the EU.
What Happens Next in the Cloud Wars
The EU probe will collect evidence and could lead to formal charges against Microsoft by mid-2026. Meanwhile, Google plans to support the process without its separate complaint.
Industry watchers predict more collaborations and mergers as companies adapt to regulations. For now, this withdrawal eases tensions but keeps the spotlight on fair cloud practices.
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