They got a very stiff warning that they would be allowed a major role in shaping the Web, but that strangling it outright would be the end of them.

Imperfect, but enough.

Honestly they had it easy because of inertia and because they managed to build a successful business with cloud technology.

Had they failed with Gaming, Office365 + Azure the same way they failed in the mobile market, Microsoft would not be the same company as it is today and as it was 20 years ago.