Google Cloud enables free switching to other providers in the EU

Google Cloud launched the Data Transfer Essentials service for customers in the EU and the UK on Wednesday. This allows customers to transfer their data from the US company's cloud to other providers free of charge. The new Data Transfer Essentials are a response to the EU Data Act, which is intended to promote interoperability and freedom of choice. Although the regulation allows cloud providers to pass on the costs of such transfers to their customers, Google has decided not to do so.

The Data Act, which came into force at the beginning of 2024, will apply from Friday. It is intended to enable users to switch "seamlessly" between different cloud providers. According to the EU Commission, this provision promotes competition and choice on the market. At the same time, dependencies on individual operators would be reduced. This would allow any European company to combine data services from different providers ("multi-cloud").

The competition is not quite following suit

Google Cloud's move goes beyond the requirements of the regulation. Parallel processing fees will no longer apply for many customers. In contrast, Azure retains a surcharge "at cost" and limits this to the EU. AWS only offers customers in the member states "reduced" fees.

In February 2024, Google Cloud was the first provider to abolish exit fees for customers willing to switch. The provider is now continuing this open course, explains Jeanette Manfra from the hyperscaler's compliance department in a blog post.

Google Cloud managers have been complaining for years that Microsoft has been tying customers to its own cloud service Azure with well-known tricks and building artificial walls against competitors. Restrictive license conditions are the biggest threat to customers' freedom of choice and are tantamount to a billion-euro tax on innovation and economic growth in the EU.

(vbr)