Google has dropped its antitrust complaint against Microsoft in the EU
Just last year, Google lodged an antitrust complaint against Microsoft in the EU. Now, a week into the probe by investigators, Google has had a change of heart and has withdrawn the complaint.
The 2024 complaint was filed by Google Cloud, with Microsoft accused of trying to lock users into its Azure product through licensing of Windows, Office and other software. Just last week, the European Commission launched a series of investigations, and this has been the catalyst for Google’s complaint withdrawal.
It appears that Google is of the mind that the commission is dealing with the body of its complaint in a separate investigation, and therefore does not feel the need to push for anything else.
When the European Commission launched its market investigations earlier in the months, it said at the time:
Market investigations into Amazon Web Services and Microsoft Azure
Analyses of cloud markets conducted in recent years appear to indicate that the cloud computing services Microsoft Azure and Amazon Web Services occupy very strong positions in relation to businesses and consumers. Moreover, the Commission will assess if certain features of the cloud sector may further reinforce the position of Microsoft Azure and Amazon Web Services.
If the Commission's investigation finds that Microsoft Azure and Amazon Web Services qualify as important gateways under the DMA, the cloud computing services would be added to the list of core platform services for which Amazon and Microsoft are already designated as gatekeepers.
Market investigation on the DMA's application to cloud markets
The Commission is also gathering information from relevant market players to assess whether the current obligations under the DMA are effective in addressing practices that limit competitiveness or are unfair in the cloud sector. The investigation will cover, for instance, obstacles to interoperability between cloud computing services, limited or conditioned access for business users to data, tying and bundling services, and potentially imbalanced contractual terms.
Next Steps
The Commission aims to conclude the market investigations on Microsoft Azure and Amazon Web Services within 12 months.
Should the Commission conclude Microsoft and Amazon fulfil the criteria to be designated as gatekeepers for their cloud computing services under the DMA, Amazon and Microsoft would have six months to ensure full compliance of their designated cloud computing services with the DMA obligations.
The market investigation on the DMA's application to cloud markets will result in a final report to be published within 18 months, which may propose the update of the DMA obligations in respect to cloud by way of a delegated act pursuant to Article 12 and 49 DMA.
In a statement about the change of heart, Google’s Head of Government Affairs & Public Policy for Google Cloud Europe, Giorgia Abeltino, says:
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. Today, we are withdrawing it in light of the recent announcement that the EC will assess problematic practices affecting the cloud sector under a separate process. We stand behind the arguments outlined in the blog below, and we continue to work with policymakers, customers, and regulators across the EU, the UK, and elsewhere to advocate for choice and openness in the cloud market.
What is interesting about this shift is that it has been done quietly. The above statement from Abeltino was not published as a big announcement, but was instead attached as an update to a months-old blog post.