Google Cloud withdraws criticism with European Fee over Microsoft’s cloud licensing techniques

Google Cloud has confirmed the withdrawal of a criticism it filed with the European Fee (EC) in September 2024, regarding Microsoft’s controversial cloud licensing technique, whereby it expenses clients increased charges for eager to run its software program in competing cloud environments.

The problem has seen Microsoft repeatedly are available in for criticism and scrutiny from regulators, commerce our bodies and cloud market stakeholders from around the globe in recent times, with analysis beforehand claiming the tactic is costing enterprises billions in extra annual licensing charges.

As beforehand reported by Laptop Weekly, Google Cloud introduced in September 2024 its intention to file an antitrust criticism with the EC, on the premise that Microsoft’s cloud licensing technique put clients at elevated threat of provider lock-in by making it cost-prohibitive for them to modify between suppliers.

Talking on the time of the criticism’s submitting, Amit Zavery, former vice-president, common supervisor and head of platform at Google Cloud, mentioned Microsoft’s merchandise – notably Home windows Server – have been prevalent throughout the enterprise IT market, with customers operating them in non-public datacentres, on-premise environments and within the cloud.

“What Microsoft does is limit these licences to be taken to different cloud suppliers and places all of them in direction of Azure, and [in doing so is] linking the on-premise merchandise, in addition to Home windows Server, to Azure, that are actually two totally different markets. One is across the working system and on-premise, and the opposite one is about cloud,” mentioned Lavery, who left Google in October 2024.

“That’s why we imagine this regulatory motion is the one method to finish Microsoft vendor lock-in and for purchasers to have a selection, and create a degree taking part in subject for purchasers.”

Regardless of these considerations, Google has confirmed its criticism in opposition to Microsoft has now been withdrawn, as of Friday 28 November 2025, within the wake of the EC’s determination to launch its personal probe into Microsoft’s maintain on the continent’s cloud market.

In an announcement, Giorgia Abeltino, head of presidency affairs and public coverage at Google Cloud Europe, mentioned the corporate stands by its earlier misgivings about Microsoft’s behaviour, and the contents of its authentic criticism.

“We filed our antitrust criticism with the European Fee (EC) to present voice to our clients and companions concerning the difficulty of anti-competitive cloud licensing practices,” mentioned Abeltino.

“We’re withdrawing it in gentle of the current announcement that the EC will assess problematic practices affecting the cloud sector beneath a separate course of.”

Abeltino continued: “We stand behind the arguments outlined in [our earlier blog], and we proceed to work with policymakers, clients and regulators throughout the EU, the UK, and elsewhere to advocate for selection and openness within the cloud market.”

The EC investigation into Microsoft was introduced 10 days earlier than Google determined to withdraw its criticism, which is able to centre on whether or not Microsoft must be introduced into scope of the Fee’s Digital Markets Act (DMA).

This could doubtlessly see Microsoft being given “gatekeeper” standing by the EC, in recognition of how a lot management the corporate has on the general cloud computing market.

As per the phrases of the DMA, gatekeepers are sometimes massive tech corporations which can be in a position to management entry to digital providers markets and, in flip, make it troublesome for smaller corporations to achieve a foothold in them.

They need to additionally meet a selected set of market worth, income era and person quantity metrics to be labelled gatekeepers, and are anticipated to abide by guidelines set by the EC to encourage competitors to thrive inside the components of the digital providers market they function in.

Failing to observe these guidelines can lead to the fee issuing fines of as much as 10% of an organization’s annual income for a first-time violation, rising to twenty% for repeat offences.

The EC additionally confirmed {that a} separate investigation alongside the identical traces can be being launched into Amazon Net Companies (AWS), with a remaining report on the findings uncovered on account of these probes due inside 18 months.