TLDR
- Google pulls complaint as EU probes cloud giants, sparking new regulatory pressure.
- EC eyes Azure and AWS as possible gatekeepers, cloud competition stakes rise.
- Alphabet stock dips after complaint withdrawal amid uncertainty over DMA rules.
- Shift signals Google’s move from confrontation to collaboration with regulators.
- Cloud market dominance under fire as EU explores stricter interoperability rules.
Alphabet Inc. (GOOG) shares slipped during the trading session after Google withdrew its European Union antitrust complaint against Microsoft. Early in the day, the stock reached a peak, but by late morning it settled around $317.76, representing a decline of about 0.79%.
Alphabet Inc., GOOG
The move follows a major shift in regulatory dynamics as the European Commission (EC) opened a broader probe into cloud-computing practices under the Digital Markets Act (DMA).
Google Withdraws Complaint Amid EC Cloud Probe
Google formally retracted its complaint after the EC announced new investigations into whether Microsoft’s cloud business, Microsoft Azure and Amazon Web Services (AWS) should be regulated under the DMA. The complaint had alleged that Microsoft locked customers into Azure through restrictive licensing practices. The withdrawal came roughly a year after the complaint was first filed.
The EC launched three market investigations: two will assess whether Azure and AWS should be designated as “gatekeepers,” and a third will evaluate the DMA’s effectiveness in ensuring fair competition in cloud services. The investigation will analyze issues such as interoperability, data access and exit-fee practices that may hinder cloud competition.
Google judged its original complaint unnecessary. Google said it will continue to engage with policymakers, customers and regulators to support openness and choice in cloud markets across the EU and other regions.
Cloud Market Context and Regulatory Stakes
Cloud computing in Europe and globally has become dominated by a few major providers. AWS and Azure hold a substantial portion of the market, with Google Cloud trailing behind. Industry reports suggest that high market concentration and licensing practices have raised concerns about customer lock-in and limited interoperability.
The EC’s DMA targets companies with durable positions in digital markets, especially those deemed “gatekeepers.” While the DMA originally covered core services like search engines and app stores, regulators are now considering whether it should also apply to major cloud services. If Azure or AWS gain gatekeeper status, they would face strict obligations, including limitations on self-preferencing and requirements to ensure data portability and fair access for business customers.
Regulators argue such steps are essential to preserve competition, promote innovation and ensure businesses can switch easily between providers. Cloud customers and smaller providers have voiced fears that entrenched dominance by a few large firms could stifle competition and raise costs.
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