Google has made a surprise move by withdrawing its formal complaint to the European Commission over cloud computing practices Microsoft's. The decision comes just a week after EU regulators announced they were launching a new investigation to see if Microsoft should be subject to stricter restrictions under European digital market rules.
The background to the Google–Microsoft dispute
Google's initial complaint was filed last year, alleging that Microsoft was using anticompetitive tactics that locked customers into the Azure. According to Google, licensing terms and technical barriers made it difficult for customers to move to other cloud providers, forcing businesses and organizations to stay tied to Microsoft's products for longer than they wanted.
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Microsoft, for its part, has denied accusations of foreclosing competitors, but pressure from cloud providers in Europe has continued to grow, paving the way for more thorough scrutiny from European authorities.
The cloud market: A battle of three giants
Cloud computing is currently one of the most strategic and profitable technology sectors. According to recent data, Amazon Web Services maintains the top position with a 30% share, followed by Microsoft Azure at 20%, while Google Cloud occupies 13% of the global market.
Although Google remains third, its platform is recording steady growth in Europe, partly due to its strategic partnerships with governments and companies seeking alternatives beyond the dominant players.
Why did Google withdraw its complaint?
In an article published on its corporate blog, Giorgia Abeltino, head of government relations at Google Cloud Europe, announced that the company decided to withdraw the complaint “in light of the recent announcement” by the European Commission.
See also: French antitrust authority rejects complaint against Microsoft
The Commission is now launching a separate review of broader commercial practices in the cloud industry, which appears to have addressed some of Google's concerns. The company says it will continue to work with policymakers and regulators in the EU, the UK and internationally to ensure "open and fair cloud markets".
The move is being interpreted by analysts as Google's attempt to avoid a public confrontation with Microsoft at a time when the EU appears poised to take action on its own. In other words, the burden of pressure is now shifting to regulators.
EU researchers under the cloud microscope
The European Commission, as the main competition enforcer in Europe, is examining whether specific market features disproportionately strengthen the position of Microsoft Azure and Amazon Web Services. The investigations focus on:
- Software licensing terms that make it difficult to port workloads
- Possible discounts that favor the use of specific services
- Technical implementations that limit interoperability
- Practices that prevent smaller cloud providers from competing on an equal footing
The investigations are expected to last about a year and could lead to one of the most significant decisions the EU has ever made for the technology sector.
See also: India: Apple asks to block antitrust law
To be classified as “Gatekeepers”? What does this mean?
If Azure and AWS are designated as “gatekeepers” under the Digital Markets Act (DMA), then they will be required to comply with a strict list of obligations. These include:
- Limitation on exclusivity practices
- Mandatory interoperability with other services
- Avoiding combination packages that trap customers
- Transparency regarding prices and usage data
The DMA's goal is to open up the market to smaller players and give customers more choice — something that many European cloud companiesis necessary to boost competition.
The future of the cloud market in Europe
Google's move shows that the battle for cloud dominance is just beginning to take a new turn. With the EU stepping up its investigations, 2026 is set to be a watershed year for how businesses buy, use and migrate cloud services.
Whether there are sanctions or new rules, one thing is certain: the cloud landscape in Europe is changing — and tech giants are preparing for a decade of increased scrutiny and intense competition.
