AWS follows Google and abolishes egress fees

In recent months, significant changes have emerged in the cloud computing sector that could have a profound impact on competition and user freedom. These include the announcements by Google and now Amazon Web Services (AWS) that they will no longer charge egress fees for transferring data to other cloud providers or back to their own data center. The abolition of egress fees by AWS and Google can be interpreted as a reaction to the provisions of the EU Data Act, which requires cloud providers in the EU to remove all barriers to effective switching between cloud services by September 2025 at the latest. This includes commercial, contractual, technical or organizational barriers, including exit fees. However, AWS's move does not only affect the EU region, but all AWS regions worldwide.

Elimination of egress fees: A new chapter for the cloud

AWS customers will therefore be able to migrate their data to another cloud provider or back to their own data center without the so-called egress fees. This change extends AWS's previous offer, which already allowed the free transfer of up to 100 Gbytes of data per month from its servers, and follows a similar move by Google Cloud Platform (GCP), which had already made a similar announcement two months earlier.

The decision by AWS and Google to eliminate egress charges globally, despite the EU Data Act only applying in the EU, indicates a growing awareness of the importance of customer convenience and compliance with global regulatory trends. It also reflects a strategic positioning to be prepared for the scrutiny of egress charges by competition authorities in other regions such as the UK and the US.

What to do now

AWS chief developer Sébastien Stormacq stated in a blog post that the 100 Gbytes of free data transfer to other platforms that AWS has enabled to date is sufficient for 90 percent of AWS customers. According to Stormacq, anyone wishing to transfer more than 100 Gbytes due to a change of provider must contact customer service to request credits for data transfer when switching. This step is necessary because AWS cannot know whether the increased transfer volume is routine or based on a change of provider. If the request is approved, AWS will provide a credit for the data to be migrated. The final closing of the account is not necessary, even if the customer moves to another provider, because AWS wants to make it as easy as possible for the customer to return at a later date.

The impact on the market and Azure's response

The decisions by AWS and Google could increase the pressure on other major cloud providers, in particular Microsoft Azure, to take similar measures. While an official response from Azure is still pending, it is to be expected that industry dynamics and regulatory developments could also prompt Microsoft to make adjustments.

This development has the potential to fundamentally change the landscape of cloud computing by facilitating the mobility of data between different platforms and thus promoting freer and fairer competition. It could also be an important step towards greater transparency and flexibility in the cloud sector, increasing customer choice and ultimately leading to better and more cost-efficient solutions.

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