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PaaS + IaaS

Big clouds scramble as EU Data Act brings new data transfer rules

Arbitrarily inflated lock-in-tastic fees curbed as movement charges must be cost-linked

iconDan Robinson
Wed 10 Sep 2025 //13:45 UTC

Updated Most of the provisions of the EU Data Act will officially come into force from the end of this week, requiring cloud providers to make it easier for customers to move their data, but some of the big players are keener than others.

TheEuropean Data Act is an ambitious attempt by the European Commission to galvanize the market for digital services by opening up access to data. But it also contains provisions to permit customers to move seamlessly between different cloud operators and combine data services from different providers in a so-called multi-cloud strategy.

Cloud users have often complained about the fees that operators charge whenever data is transferred outside of their networks. Investigations by regulators such as the UK's Competition and Markets Authority (CMA) have led the big three platforms –AWS,Microsoft's Azure andGoogle Cloud – to all waive egress fees, but only for users quitting their platforms.

While the Data Act doesn't rule out vendors charging data transfer fees, it does expect cloud firms to pass on costs to customers rather than charging arbitrary or excessive payments.

Google is keen to publicize that it is going further than this and offering data movement at no cost for customers in both the European Union and the United Kingdom via a newly announcedData Transfer Essentials service.

There's a catch, of course – Google makes it clear that its service is designed for cost-optimized data transfer between two services of a customer organization that happen to be running on different cloud platforms.

In other words, it is for traffic that would effectively be considered internal to the customer organization and not for transfers to third parties. Google warns that if one of its audits uncovers that the service is being misused in this way, the traffic will be billed as regular internet traffic.

Microsoft is offeringat-cost transfer for customers and cloud service partners in the EU shifting data to another provider, but there are also strings attached. Customers must create an Azure Support request for the transfer, specifying where the data is to be moved, and it must also be to a service operated by the same customer, not to endpoints belonging to different customers.

We understand that AWSspecifies that EU customers "request reduced data transfer rates for eligible use cases under the European Data Act," requiring them to contact customer support for further information. We asked AWS for clarification.

Google claims that its move demonstrates its own commitment to harbouring an open and fair cloud market in Europe.

This might have something to do with it being a bit of an underdog here, making up about 10 percent of the European cloud market, while AWS is estimated to take 32 percent, and Azure another 23 percent.

"The original promise of the cloud is one that is open, elastic, and free from artificial lock-ins. Google Cloud continues to embrace this openness and the ability for customers to choose the cloud service provider that works best for their workload needs," said the Google Cloud's senior director for global risk and compliance, Jeanette Manfra.

Mark Boost, CEO of Civo, told us:

"Whenever the EU regulates tech, fate flips a coin. Fortunately, when it comes to the Data Act, the results seem broadly positive.

"In particular, the principles of cloud interoperability and choice baked into the Act are a welcome step. The slight frustration is that much of Europe's cloud market has been observing these principles much more rigorously for years. To give credit where it's due, Google has decided to offer a cost-free service to switch cloud providers in response to the Act, but other large providers are still simply offering at-cost data transfers or slight price reductions.

"Full, cost-free interoperability has been the trend for years, with more and more customers growing tired of egress fees and cloud credit traps. The Act won't make these go away - but it will make it harder to justify. With pressure mounting from customers and regulators, there might be light at the end of the tunnel for Europe's cloud market." ®

Updated at 16.51 UTC on September 10, 2025, to add:

AWS has made contact following publication of this article to say it will not charge more than cost for data transfers if a customer wants to use services from a different cloud service provider.


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