The two tech giants confirmed that they have reached an agreement which will see both drop complaints against one another.
It was also agreed that any future disagreements will be dealt with privately between the companies before going to regulators to settle issues.
Speaking to Re/code, a Microsoft spokesperson said the companies are willing to work together to resolve future problems:
“Microsoft has agreed to withdraw its regulatory complaints against Google, reflecting our changing legal priorities. We will continue to focus on competing vigorously for business and for customers.”
Googled echoed the vigorous competition line in its own statement, with Mountain View stating “Our companies compete vigorously, but we want to do so on the merits of our products, not in legal proceedings.”
So, this is a new era of co-operation for the two companies? Maybe, although no product commitments were made in the agreement. However, closing this episode does point to an easing of tensions between the two companies and the warmer working relationship between Microsoft CEO Satya Nadella and Google chief Sundar Pichai has been cited as a potential reason for the agreement.
It is certainly a stark contrast to Steve Ballmer's final years in the hot seat at Microsoft, when the company embarked on an aggressive and mostly failed advertising campaign against Google. During that time, Microsoft went after Google in a “Scroogled” campaign that painted Microsoft as saint and Google as sinner.
Google is having issues with regulators in Europe at the moment, so the company is probably glad to have cleared up the situation with Microsoft. In the EU, regulators have said the company is abusing its position in the Android market, while Google has faced constant pressure from the European Commission over its practices.
Nadella has steered Microsoft into a cloud first company, where Mountain View is a direct competitor. However, Microsoft has also been spreading its services wings and launching products and apps on other platforms, including Android.