What To Know: Google dropped its complaint about a week after EU officials opened an investigation into whether Microsoft should face tougher rules aimed at restraining its dominance in cloud computing.
According to the Wall Street Journal, Google said its withdrawal was tied to the European Commission's investigations into whether Microsoft's Azure and Amazon Web Services need to follow the Digital Markets Act, The EU’s digital economy law.
The European Commission is determining whether certain parts of the cloud sector are strengthening the market power of Azure and AWS. The probes, expected to wrap up within a year, could lead to both platforms being named as "gatekeepers" under the Digital Markets Act — a status that would require them to make it easier for rivals to compete and for users to have more options.
The chips, offered through Google Cloud, could be rented by Meta as soon as next year, with potential spending reaching into the billions by 2027 and beyond. The possibility of such a deal underscores Google's expanding role in the AI infrastructure space and boosted investor confidence in its cloud business.
GOOG Price Action: Alphabet shares were down 0.59% at $318.38 at the time of publication on Friday. The stock is approaching its 52-week high of $328.67, according to Benzinga Pro.
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