Google Drops EU Antitrust Complaint Against Microsoft’s Cloud Services

Google has withdrawn its antitrust complaint against Microsoft regarding the company’s cloud services, specifically Azure. This decision follows an investigation by the European Commission into whether Azure must comply with the Digital Markets Act (DMA).

Details of the Antitrust Complaint

The complaint, initially filed by Google in September 2024, accused Microsoft of employing unfair software licensing practices. Google claimed these methods were designed to establish dominance in the cloud computing sector.

Giorgia Abeltino, head of government affairs and public policy at Google Cloud Europe, emphasized that the complaint aimed to voice concerns from customers and partners about anticompetitive practices in cloud licensing. The focus was on Microsoft’s use of restrictive contracts, which allegedly locked clients into its Azure platform, making it difficult for them to consider other providers.

EU Investigation and Outcome

The European Commission indicated earlier this month that the DMA may apply to services that might not meet the typical thresholds for turnover and active users. This situation is particularly challenging for cloud providers offering services through commercial contracts, adding complexity to the investigation.

A spokesperson from the European Commission stated, “We will continue to closely monitor the cloud sector under antitrust tools, ensuring that all European consumers and businesses benefit from the development of cloud services.”

Microsoft’s Response

In response to Google’s allegations, a Microsoft representative expressed confidence that the European Commission would dismiss the complaint. Microsoft highlighted that it had previously resolved similar concerns raised by other European cloud providers. The spokesperson also accused Google of engaging in “shadow campaigns” to discredit Microsoft, particularly focusing on its cloud services.

Key Points

• Google filed an antitrust complaint against Microsoft in September 2024.
• The complaint centered on unfair licensing practices by Microsoft’s Azure service.
• The European Commission is investigating Microsoft’s compliance with the Digital Markets Act.
• Microsoft maintains confidence that the complaint will be dismissed.
• The situation highlights ongoing tensions between Google and Microsoft in the cloud computing space.

This withdrawal marks a significant development in the ongoing competition between these tech giants in the EU market.