Microsoft Corporation received a significant boost on November 28, 2025, when Google withdrew its European Union antitrust complaint targeting Microsoft’s cloud computing practices. The move came just one week after EU regulators launched a broader investigation into whether Microsoft should face stricter rules aimed at curbing its power in the cloud sector.
Microsoft’s stock climbed in premarket trading following the announcement, trading at $489.65, up $4.15 or 0.85% as of 8:10 AM EST, building on the previous day’s close of $485.50.
Google Steps Back From Litigation to Prioritize Cloud Innovation
Google’s decision to abandon its complaint represents a significant strategic pivot rather than a retreat from the European market. Last year, Google had filed the complaint with the European Commission, alleging that Microsoft’s anti-competitive practices locked customers into the Azure cloud platform through restrictive licensing and software bundling.
However, Google now appears focused on competing through new AI-powered cloud services and enterprise tools rather than pursuing lengthy regulatory battles. This approach may allow the company to concentrate resources on innovation and customer acquisition while avoiding potential regulatory backlash on its own practices.
The cloud computing market remains dominated by Amazon with a 30% share, followed by Microsoft at 20% and Google at 13%. By stepping away from the legal fight, Google is repositioning itself to compete more directly through pricing, partnerships, and technological advancement.
The company’s cloud business remains one of its fastest-growing segments, and avoiding protracted regulatory conflicts could provide more flexibility to close the gap with its larger rivals in the increasingly critical European market.
EU Probe Continues Into Microsoft’s Cloud Licensing Practices
Despite Google’s withdrawal, Microsoft remains under active investigation by European Union regulators examining whether the company’s cloud licensing and software bundling practices unfairly restrict competition. The probe focuses on whether Microsoft forces customers into its cloud ecosystem through restrictive contracts tied to Windows, Office, and enterprise software, potentially creating barriers for rivals attempting to win customers away from Azure.
Officials are scrutinizing pricing incentives and licensing structures that may lock customers into long-term dependence on Microsoft’s infrastructure.
The investigation carries significant risks for Microsoft’s cloud growth trajectory, contract flexibility, and future pricing power in Europe. As governments across the region push for data sovereignty and reduced dependence on U.S. tech firms, cloud services have become a critical battleground. The EU probe could ultimately result in forced business changes or substantial fines, even without Google’s participation as a complainant.
For investors, Microsoft’s strong financial performance continues with a market cap of $3.61 trillion and trailing P/E ratio of 34.53, though the regulatory uncertainty adds a layer of risk to the company’s dominant position in enterprise cloud computing.