Alphabet’s Google has stepped back from a high-profile antitrust dispute in Europe, opting to drop its complaint against Microsoft’s cloud computing practices. The move comes just days after European Union regulators began a fresh inquiry into whether Microsoft’s cloud business should fall under tough new competition rules, according to Reuters.

Google originally lodged the complaint with the European Commission last year, accusing Microsoft of using contractual restrictions and product bundling to keep customers tied to its Azure cloud platform. Amazon remains the dominant player in global cloud services with about a 30% market share, while Microsoft controls roughly 20% and Google about 13%, per Reuters.

Giorgia Abeltino, who oversees government affairs and public policy for Google Cloud in Europe, said the decision to withdraw the complaint reflects confidence in the EU’s new line of investigation. “Today, we are withdrawing it (Microsoft complaint) in light of the recent announcement that the EC will assess problematic practices affecting the cloud sector under a separate process,” she said in a blog post. She added that the company will continue working with regulators to ensure fair competition. “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,” she said.

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The European Commission, which enforces antitrust policy across the bloc, is analyzing whether certain business behaviors in the cloud sector strengthen the power of Microsoft Azure and Amazon Web Services at the expense of smaller competitors, according to Reuters. The review is expected to take about a year.

If investigators conclude that the two companies act as key gatekeepers in the digital economy, they could face obligations under the EU’s Digital Markets Act.

Source: Reuters