France’s competition regulator has dismissed a complaint alleging Microsoft engaged in anti-competitive practices in the cloud and enterprise software markets. The filing, reportedly made by a European cloud industry group, accused Microsoft of bundling practices and licensing rules that allegedly disadvantaged smaller service providers.

▶ Claims Focused on Cloud and Licensing Practices

The complaint claimed Microsoft’s licensing conditions made it harder for companies to run its software on rival cloud infrastructure, a long-standing concern among smaller European cloud vendors. Critics argued that such rules could reinforce Microsoft’s dominant position in productivity software and cloud services, limiting customer choice.

▶ No Sufficient Evidence to Launch Formal Probe

After reviewing the submission, the French Competition Authority concluded there were not enough grounds to justify opening a full-scale investigation. According to officials, the allegations did not present clear or quantifiable harm within the French market — a threshold required before initiating formal proceedings.

▶ Relief for Microsoft Amid Intensifying Global Scrutiny

The dismissal offers a strategic reprieve for Microsoft, which is facing intensifying antitrust pressure in multiple regions, including the European Union, the United States, and the United Kingdom. Recent regulatory attention has centered around cloud computing, enterprise software bundling, and the integration of AI features across Microsoft’s platforms.

▶ Competitors Question Regulatory Approach

Industry rivals expressed disappointment, arguing the decision reflects structural challenges in addressing fast-changing digital market dominance. They contend that existing competition laws often lag behind evolving cloud and AI business models, enabling powerful firms to strengthen their positions before regulators can act.

▶ Wider European Cloud Market in Transition

The ruling comes at a time when European governments are increasingly supporting domestic cloud alternatives to offset reliance on U.S.-based tech giants. As AI adoption accelerates, regulators across the continent are under pressure to ensure fair access and prevent market concentration.