Google has formally withdrawn its first-ever, long-standing antitrust complaint against rival Microsoft concerning its cloud computing practices in the European Union (EU). Google had originally filed the complaint with the European Commission (EC) last year, alleging that Microsoft was exploiting its dominant position in the Windows Server operating system to engage in anti-competitive practices that locked customers into its Azure cloud platform. The decision comes a week after EU regulators announced an investigation into the cloud market to determine if giants like Microsoft and Amazon should face new restrictions aimed at curbing their power.Google Cloud Europe head of government affairs, Giorgia Abeltino, confirmed the withdrawal while explaining the shift in strategy.“Today, we are withdrawing it (the Microsoft complaint) in light of the recent announcement that the EC will assess problematic practices affecting the cloud sector under a separate process,” Abeltino stated. While the complaint is withdrawn, Google said that it will continue to advocate for choice and openness with regulators and policymakers across the EU and the UK.
Why Google filed a complaint against Microsoft in Europe
Google’s original complaint focused on significant licensing penalties that Microsoft allegedly imposed on customers choosing rival cloud providers. Google Cloud Vice President Amit Zavery previously stated that Microsoft forced customers to pay a 400% mark-up to run Windows Server on competing clouds, a cost not applied to Azure users. Users of rival systems also received later and more limited security updates.A 2023 study by the cloud services organization CISPE found that European businesses were paying up to 1 billion euros ($1.12 billion) annually on Microsoft licensing penalties. According to Google, Microsoft was using the same restrictive playbook that locked customers into its Teams collaboration application to force vendors into Azure. Zavery had emphasized the urgency of regulatory action, stating, “The cloud market will get more and more restrictive if things don’t happen now.”The European Commission launched its broader inquiry last week into the entire cloud sector.
