Google Cloud is ahead of EU regulations, announcing the removal of data transfer fees for multi-cloud customers in the European Union and the UK.
The move comes just before the new Data Act comes into force and signals increasing regulatory pressure on the three largest market players: Amazon Web Services (AWS), Microsoft Azure and Google Cloud.
The new EU law, which formally takes effect this Friday, aims to make it easier for customers to switch cloud providers and reduce so-called ‘vendor lock-in’, or dependence on a single platform.
The Data Act requires providers to ensure that any fees for transferring data do not exceed the actual costs incurred in the process. Google is going one step further by offering, as part of its new ‘Data Transfer Essentials’ service, a completely free transfer for organisations that process their workloads in parallel with two or more providers.
Google’s decision puts the company in a favourable light against its competitors. In response to the same regulations, Microsoft updated its pricing in the EU at the end of August, introducing ‘at cost’ transfer charges.
Market leader AWS, on the other hand, reports on its website that EU customers can apply for reduced rates in eligible cases.
Google’s move is strategically aimed at the needs of companies employing a multi-cloud strategy. Using multiple providers at the same time allows for greater resilience of IT systems, greater flexibility and access to the specialised services of each platform.
Until now, a high barrier cost has been precisely the data transfer fees (egress fees) between clouds. Google’s initiative could significantly reduce these costs.
These actions are part of a wider trend of increased attention from regulators. The UK’s Competition and Markets Authority (CMA) has previously raised concerns about the lack of competition in the cloud market, indicating in July that Microsoft’s licensing practices could put other providers at a disadvantage.
While Google still has a smaller market share than AWS and Microsoft, its proactive stance on fees could attract customers and accelerate change across the industry.
