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Google has announced it will scrap data transfer fees for organisations using multiple cloud providers in the European Union and the UK, just days before the EU Data Act comes into effect. The move, revealed Wednesday, is designed to strengthen competition in the cloud computing market, currently dominated by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
The EU Data Act, effective Friday, is aimed at making it easier for businesses to switch between cloud providers. It requires providers to charge data transfer fees only “at cost.” Google has gone further by introducing its Data Transfer Essentials program, which eliminates these costs entirely for transfers between Google Cloud and rival platforms. Jeanette Manfra, Senior Director of Global Risk and Compliance at Google Cloud, emphasized that the program is available immediately and at no cost to customers.
Competitors have also responded to regulatory pressure. Microsoft introduced “at cost” transfer fees in August, while AWS stated EU customers could request reduced rates for specific use cases. However, Google’s zero-cost model may set it apart as the most customer-friendly option.
Many organisations opt for multicloud strategies to increase resilience, reduce risks, and enhance flexibility in workload processing. Google’s decision is likely to appeal to these businesses while aligning with EU regulators’ goal of boosting interoperability and reducing dependency on a single provider.
The UK’s Competition and Markets Authority has also expressed concerns about cloud market concentration. In July, it specifically highlighted Microsoft’s licensing practices as potentially harmful to competition.
By eliminating transfer fees, Google is positioning itself as a champion of open competition and user choice in the evolving cloud landscape, while also gaining a competitive edge in the multicloud era.
