Microsoft Shares Gain as Regulatory Landscape Shifts

The ongoing battle for cloud computing supremacy has taken a surprising turn, with Google unexpectedly withdrawing its antitrust complaint against Microsoft. While this development initially appears favorable for investors, the strategic retreat by Microsoft’s longtime rival introduces new regulatory complexities that could potentially reshape the competitive environment.

European Regulators Take Center Stage

Google formally withdrew its September 2024 complaint regarding Microsoft’s cloud licensing practices, but this represents tactical repositioning rather than peaceful resolution. The withdrawal coincides with the European Commission’s November 18, 2025, decision to launch a comprehensive investigation under the Digital Markets Act (DMA).

With European regulators now actively examining whether Microsoft and Amazon Web Services qualify as “gatekeepers,” Google’s private complaint became redundant. For investors, this consolidation of regulatory scrutiny simplifies the risk assessment, shifting focus from multiple simultaneous challenges to a single, though potentially more significant, EU Commission proceeding.

Financial Performance Overshadows Regulatory Concerns

Market participants have responded cautiously optimistically to these developments, with Microsoft shares climbing over 3% to close at €424.40 for the week. This confidence appears grounded in fundamental strength, reinforced by the company’s announcement of a quarterly dividend of $0.91 per share payable in December.

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

The dividend declaration signals stability in Microsoft’s capital return program despite substantial ongoing investments in AI infrastructure. Operational metrics further support this positive sentiment, with the company reporting first-quarter fiscal 2026 revenue approaching $78 billion. The sustained double-digit expansion of Azure AI services demonstrates remarkable resilience amid regulatory challenges emanating from both Brussels and Washington.

Distinguishing Between Regulatory Threats

Investors should recognize the distinction between various regulatory proceedings. While the EU investigation represents a new development, the ongoing US Federal Trade Commission examination into cloud and AI bundling practices, initiated in November 2024, has largely been factored into market expectations.

Attention now shifts to technical indicators and shareholder patience. Market analysts caution that the European Commission’s procedure could extend for up to twelve months. However, as long as cloud segment growth drivers remain robust, investors seem willing to overlook regulatory noise. The critical question remains whether Microsoft shares can leverage their recent upward momentum to decisively overcome key technical resistance levels.