Malakhov vs. Azmaiparashvili, 2003

View Game: http://www.viewchess.com/cbreader/2013/7/5/Game1397437.html 

'In winning the 2003 European Championship in Istanbul, Azmaiparashvili admitted (to) retracting a move against Vladimir Malakhov (who subsequently finished second). By retracting his blunder and playing a sensible move, Azmaiparashvili won the game and the tournament. Malakhov could have enforced the rules but said that he was too shocked to react.' ~ en.wikipedia.org

Did Azmaiparashvili really cheat in this instance? All of his actions were in full view of everyone. Had he been called on his retraction and subsequently denied that it even happened, then it would have been cheating. If a tennis player accidentally touches the net while making a volley and his opponent sees it but chooses not to complain to the umpire, is that cheating? In both cases it is up to the opponent to demand enforcement of the penalty. Azmaiparashvili didn't want to lose the game by a blunder and apparently Malakhov didn't want to win the game that way. So it seems that there was a meeting of the minds and the game continued under the auspices of an unspoken gentleman's agreement. Who was the victim?