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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Google Cloud filed an antitrust complaint with the European Commission on September 25, 2024, alleging that Microsoft’s licensing rules made Windows Server, SQL Server and related workloads more expensive or less flexible on rival clouds such as Google Cloud and AWS. Google withdrew that complaint on November 28, 2025, after the Commission opened a separate cloud-sector process under the Digital Markets Act (DMA).
As of August 18, 2026, the continuing issue is the Commission’s broader DMA investigation. On June 25, 2026, the Commission announced a preliminary view that Microsoft Azure and Amazon Web Services (AWS) should be designated DMA gatekeeper services. That is not a final designation and is not a final finding that Microsoft violated EU antitrust law.
What Google alleged
The dispute concerns the commercial and legal conditions attached to Microsoft software, not a claim that Azure, Google Cloud or AWS has inherently better or worse technology. Google argued that Microsoft made its software cheaper or more flexible on Azure than on competing infrastructure, creating a financial incentive to move workloads to Azure.
The licensing mechanics
A company can technically move a Windows Server workload from Azure to another provider. But if the Microsoft license costs substantially more outside Azure, removes virtualization or bring-your-own-license (BYOL) options, or changes access to support and security updates, the move can be technically possible but commercially unattractive. That distinction is central to Google’s argument.
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- Technical portability: whether the application can run on another provider.
- Contractual portability: whether Microsoft’s license permits that deployment.
- Economic portability: whether the customer can afford the license and related fees.
- Operational portability: whether support, security updates and management remain comparable.
Why Windows Server and SQL Server matter
The typical “lift-and-shift” path starts with a business moving an existing on-premises Windows Server or SQL Server workload to cloud infrastructure. If the same Microsoft software receives materially better licensing treatment on Azure, Azure becomes the economically obvious destination. Additional services, data and management tools may then accumulate in that environment, raising switching costs.
In a submission to the UK Competition and Markets Authority, Google also discussed Windows, Visual Studio and Microsoft productivity software as sources of leverage across enterprise IT: Google Cloud’s CMA submission.
The 400% allegation
Google said Microsoft’s rules could produce markups of up to 400% for customers running Windows Server on rival clouds. That is an allegation about relevant licensing scenarios, not a universal price increase and not a finding by the European Commission. Google’s announcement is at Google Cloud’s complaint post.
The €1 billion estimate
Google cited a 2023 study by the Cloud Infrastructure Services Providers in Europe (CISPE), an industry association representing European cloud infrastructure providers, which estimated that European businesses and public-sector organizations could be paying up to €1 billion per year in licensing-related penalties for using rival clouds. It is an industry-study estimate, not independently established regulatory damages; Reuters reported the figure in its coverage.
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Microsoft’s response
Microsoft said it had amicably settled comparable concerns raised by European cloud providers and expected Google’s complaint not to persuade the Commission. Its position was that the CISPE settlement addressed the relevant licensing issues. Microsoft’s response was reported by Reuters in the same report.
A price difference between Azure and another cloud is not automatically unlawful. Microsoft can point to integrated software-and-infrastructure economics, enterprise discounts, committed-use arrangements, support and operational integration. The legal question is whether contractual terms unfairly disadvantage rivals or foreclose competition, not whether Azure is always the cheapest option.
How the CISPE agreements changed the dispute
The July 2024 agreement
Microsoft reached an agreement with CISPE in July 2024, reportedly involving about €20 million, helping avert a separate EU investigation. The arrangement promised participating CISPE members improved access to Windows Server under terms intended to bring pricing closer to Azure. It did not resolve Google’s separate complaint or automatically give Google Cloud and AWS the same treatment. The background is described by TechCrunch.
The July 2025 follow-up
CISPE’s 2025 European Cloud Competition Observatory report said the later agreement provided CISPE members with:
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- Azure-comparable pay-as-you-go licensing for Windows Server and SQL Server;
- a Flexible Virtualization Benefit for certain BYOL arrangements;
- additional privacy and sovereign-cloud provisions; and
- guarantees related to Microsoft’s Services Provider License Agreement program.
CISPE also said the terms did not extend to hyperscalers such as Google Cloud and AWS in the same way, and did not cover every emerging bundling or AI-related strategy. The report is available at CISPE’s 2025 report.
Why Google withdrew its complaint
On November 28, 2025, Google updated its original announcement to say it was withdrawing the complaint because the European Commission had launched a separate process to assess problematic practices in cloud computing. Google said it continued to stand by the substance of its arguments: Google’s withdrawal update.
Withdrawal does not mean the Commission rejected the complaint, that Microsoft won a case, or that Google conceded its claims. The available record supports a change in regulatory route, not a merits ruling.
What the European Commission is investigating
The Commission opened its cloud DMA market investigations on November 18, 2025. The process has three connected questions:
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- Whether AWS should be designated a DMA gatekeeper service.
- Whether Microsoft Azure should be designated a DMA gatekeeper service.
- Whether the DMA can address cloud practices that may undermine competition or fairness.
The Commission identified potential concerns involving interoperability, restricted or conditioned access to business-user data, tying and bundling, and potentially imbalanced contractual terms. Its announcement is at the European Commission’s cloud-investigation page.
What the June 2026 announcement means
On June 25, 2026, the Commission announced a preliminary position that AWS and Azure should be designated gatekeeper services, describing AWS as the largest and Azure as the second-largest cloud service in the EU. A preliminary position is not a final designation, an enforcement order or proof that every licensing practice challenged by Google is unlawful. The announcement is at the Commission’s June 2026 statement.
Antitrust complaint versus DMA process
Google’s filing was a competition complaint to the European Commission. The later cloud investigation uses the Digital Markets Act, a separate legal and procedural framework. A company complaint can draw regulatory attention without automatically becoming a formal infringement case. Conversely, a gatekeeper designation creates DMA obligations but does not by itself establish abuse of dominance under traditional EU antitrust rules.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What this means for cloud customers
The immediate financial effect depends on each customer’s licenses and contract. Organizations most exposed to the issue generally run Windows Server or SQL Server, rely on Microsoft enterprise agreements, use third-party providers, need ongoing security updates, or are considering a multi-cloud or sovereign-cloud design.
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- Power that lasts all day – With 20 hours of battery life[3], the new Surface Laptop powers through your entire day, so you can create, work and stream from morning to night without reaching for a charger.
- Work at the speed of your ideas – Built with the latest Qualcomm Snapdragon X2 Elite (12 Core) processors, Surface Laptop delivers fast, AI‑accelerated performance—making it the most powerful Surface laptop for everything from multitasking to demanding workloads.
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Use a workload-level total-cost comparison
Compare the complete cost of a specific workload rather than only virtual-machine prices:
| Cost or right to check | Why it can change the result |
|---|---|
| Windows Server and SQL Server licenses | BYOL eligibility, subscription terms and provider-specific rights can differ. |
| Virtualization and hosting rights | A technically portable workload may require a different license outside Azure. |
| Security updates and support | Any loss of update eligibility or support changes risk and operating cost. |
| Microsoft discounts | Enterprise agreements, Azure Hybrid Benefit, reservations and savings plans may be provider-specific. |
| Cloud charges beyond compute | Storage, backup, disaster recovery, observability, support and data egress can dominate the bill. |
| Exit and migration costs | Refactoring, data movement and contract commitments affect practical switching costs. |
Procurement questions
- Which Microsoft licenses are in use, and are they perpetual, subscription or enterprise-agreement licenses?
- Is BYOL permitted in the target environment, including the planned virtualization model?
- Are Windows Server and SQL Server prices, support and security updates equivalent outside Azure?
- Which discounts disappear if the workload moves to AWS, Google Cloud or an independent provider?
- What are the egress, backup, disaster-recovery and managed-service charges?
- What happens if the organization later moves the workload again?
- Do a reseller or managed-service provider have different licensing rights?
- Are data-residency, sovereignty and contractual portability requirements documented?
Where the major cloud options fit
| Option | Potential fit | Important qualification |
|---|---|---|
| Microsoft Azure | Microsoft-heavy estates using Windows Server, SQL Server, Microsoft 365 or enterprise agreements. | Integrated discounts may lower total cost, but dependence on Microsoft can increase concentration and switching costs. |
| AWS | Broad infrastructure choice, cloud-native services and a large third-party ecosystem. | Microsoft licensing, support and existing commitments can outweigh infrastructure pricing. |
| Google Cloud | Analytics, Kubernetes, AI and buyers seeking an alternative to Microsoft-centered procurement. | Deep Microsoft dependencies may make migration or license replacement expensive. |
| European independent providers | Public-sector, regulated, sovereignty-sensitive and multi-cloud use cases; providers can be found through the CISPE directory. | CISPE membership does not establish identical prices, Microsoft rights, sovereignty guarantees or compliance for every member. |
What happens next
Google’s original complaint is withdrawn. The continuing EU development is the Commission’s DMA cloud process and its preliminary position on AWS and Azure. Future obligations, remedies or price-parity requirements are not settled by the June 2026 announcement, so customers should base purchasing decisions on the licensing terms in their own contracts rather than on an assumed regulatory outcome.
Frequently Asked Questions
Did the European Commission rule that Microsoft’s cloud licensing was illegal?
No. Google withdrew its complaint on November 28, 2025, and the Commission’s June 25, 2026 statement was a preliminary DMA position, not a final antitrust infringement decision.
Does a 400% markup apply to every Microsoft workload on AWS or Google Cloud?
No. Google alleged markups of up to 400% in particular licensing scenarios. The figure is not a universal charge and was not established as a Commission finding.
The Bottom Line
Google’s 2024 complaint is no longer pending in its original form. The practical issue remains whether Microsoft licensing makes rival-cloud deployment commercially less attractive, while the EU examines cloud competition through the separate DMA process. Buyers should model licensing, support, discounts and exit costs for each workload before choosing a provider.
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