Microsoft Shares Gain as Google Drops EU Antitrust Complaint

Microsoft has secured a temporary respite in its ongoing regulatory challenges after Google unexpectedly withdrew a formal competition complaint with the European Commission. The withdrawal represents a significant tactical shift in the competitive dynamics among cloud computing giants, though broader regulatory scrutiny of Microsoft's cloud business practices continues.

Google confirmed over the weekend that it has formally retracted its antitrust complaint against Microsoft's cloud licensing practices. The complaint had alleged that Microsoft leveraged its dominance in Windows Server software to disadvantage customers utilizing competing cloud platforms, including Google Cloud and Amazon Web Services.

Giorgia Abeltino, Google Cloud's European lead, clarified that the withdrawal stems from the European Commission's decision to initiate a comprehensive sector-wide investigation under the Digital Markets Act. Rather than conceding defeat, Google's move reflects a strategic calculation that the broader regulatory examination now underway addresses their original concerns through different mechanisms. While this eliminates Google's direct legal challenge, Microsoft remains subject to ongoing regulatory oversight from Brussels.

Strong Financial Performance Amid Mixed Investor Sentiment

Microsoft's equity demonstrated resilience at week's end, advancing 1.34 percent to close at $492.01. The company maintains its position among the world's most valuable enterprises with a market capitalization of approximately $3.61 trillion.

Should investors sell immediately? Or is it worth buying Microsoft?

Fundamental business metrics underscore the company's robust performance. First-quarter fiscal 2026 revenue expanded by 18.4 percent to reach $77.67 billion, substantially exceeding analyst projections of $75.49 billion. Earnings per share came in at $4.13, outperforming the $3.65 consensus estimate. The Azure cloud platform continues to serve as the primary growth engine, with company officials describing demand as "exceptionally strong" and constrained only by data center capacity limitations.

Institutional investment activity presents a mixed picture, however. SYM Financial increased its stake by 8.3 percent, while Academy Capital Management established Microsoft as its largest portfolio holding. Conversely, Logan Capital Management and Guinness Atkinson Asset Management both reduced their positions by approximately 6 percent. Additionally, CEO Satya Nadella's sale of shares valued at roughly $75 million has drawn attention from market participants monitoring insider transactions.

Regulatory Landscape Remains Uncertain

Despite Google's withdrawal from direct legal confrontation, Microsoft's cloud operations continue to face regulatory examination. The European Commission's independent investigation into cloud sector competition practices remains active and could potentially result in more stringent regulatory requirements over the long term.

For Microsoft, the removal of a direct competitor's legal challenge provides temporary relief but doesn't resolve the fundamental questions regarding competitive practices in the cloud services market. The company must still navigate ongoing regulatory proceedings that could shape future business operations in this critical growth segment.