Google has withdrawn its antitrust complaint against Microsoft’s cloud computing practices after EU officials opened a competition probe into the company.

Google filed the complaint in 2024 over concerns that Microsoft's Azure licensing terms are anti-competitive, preventing users from moving to another provider.

The hyperscaler dropped its complaint just a week after the EU launched an investigation into rivals Azure and AWS under Digital Markets Act (DMA) issues such as increased interoperability with rival software, and restrictions on tying and bundling apps and services.

“We filed our antitrust complaint with the European Commission (EC) to give voice to our customers and partners about the issue of anticompetitive cloud licensing practices,” Giorgia Abeltino, head of government affairs and public policy at Google Cloud Europe, said in an update.

While withdrawing the complaint in light of the probe, Abeltino said the companies “stands behind” the initial arguments, adding: “We continue to work with policymakers, customers, and regulators across the EU, the U.K., and elsewhere to advocate for choice and openness in the cloud market."

The Commission’s cloud probe seeks to determine whether Microsoft can be granted “gatekeeper” status due to its control over the overall cloud computing market.

A commission Spokesperson told SDxCentral that it “takes note of the withdrawal of the complaint of Google”. It also confirmed that the Commission opened three investigations into cloud under the DMA last week.

“We will continue to closely monitor the cloud sector under antitrust tools with a view to ensuring that all European consumers and businesses can reap the benefits of the development of cloud,” the spokesperson said.

“As a matter of principle, we cannot comment on the possible outcome of ongoing procedures. The opening of market investigations is without prejudice to their final outcome.”

If the giant is confirmed as a gatekeeper, failure to follow the rules of the EU’s Digital Markets Act can see it fined up to 10% of the company’s annual revenue, rising to 20% for repeat offenses. However, the DMA obligations would only apply six months after the gatekeeper designation, the Commission said.
Microsoft has been approached for comment.

Past challenges to Microsoft's cloud licensing practices

Microsoft has repeatedly attracted criticism from regulators and the cloud market in recent years.

Google’s complaint was joined by CISPE, the trade association for cloud providers, back in 2022. The group joined an OVHcloud and Aruba Cloud complaint to European regulators alleging Microsoft’s Azure cloud services were anti-competitive, specifically claiming the hyperscaler’s licensing costs for products like Windows Server acted as a “software licence tax.”

CISPE had moved to settle – a process Google had attempted to disrupt by offering the association both cash and software licenses to keep the dispute going.

That effort failed, however, with a $21.7 million settlement secured, along with a controversial agreement that allows its members to offer Microsoft software services under a pay-as-you-go model.

While Microsoft and Cispe settled their dispute in 2024, the pair recently came together to host Microsoft workloads for customers on European-centric infrastructure, without sharing customer details with the hyperscaler.

Some industry commentators still argue that Microsoft continues to benefit at the expense of user choice worldwide.

Commenting back in the summer, Ryan Triplette, executive director of the Coalition for Fair Software Licensing, likened CISPE's Microsoft deal to “smoke and mirrors.”

“Offer weak concessions in an attempt to avoid regulatory scrutiny and disingenuously pretend these actions promote European competition. Meanwhile, Microsoft continues to line its pockets at the expense of customer choice around the world,” Triplette said.