Cloud exit fees shrink on paper. Microsoft, AWS and Google keep switch costs in other line items ahead of EU Data Act deadline

Europe’s new cloud portability rules are forcing hyperscalers to advertise cheaper exits. The fine print still carries costs that matter.

TechGlobal.news reviewed provider statements, pricing pages and regulatory findings that detail how the largest cloud platforms are reshaping fees before the EU Data Act’s switching provisions take full effect.

What the documents show

Google Cloud said in a January 2024 blog post that it would waive data egress charges for customers who move to another provider. AWS and Microsoft announced similar programs in early 2024 through company blogs. Each ties waivers to eligibility checks and defined migration paths.

Those waivers do not remove other metered charges that apply when customers copy or replatform workloads. AWS lists request and retrieval charges for storage operations on its public pricing pages. Azure bills transaction fees for storage and assesses charges for exporting snapshots. Google Cloud prices snapshot exports, inter region transfers and API calls separately on its posted rate cards. None of those items are labeled as waived for exits in the published price lists.

Commitment discounts and software licensing also remain friction points. Ofcom’s UK cloud market study final report from 5 October 2023 identified egress fees, committed spend discounts and technical barriers as the leading obstacles to switching. It singled out Microsoft’s software licensing for making some rival clouds more expensive. Microsoft’s Product Terms define Listed Providers and restrict how customers can use existing Windows Server and SQL Server licenses on competing infrastructure. Those terms remain in the 2024 editions of the Product Terms that Microsoft publishes online.

Context and stakes

The EU Data Act, Regulation 2023/2854, entered into force in January 2024. It caps cloud switching charges during a transition and requires their removal by 2027. The law also tasks the European Commission with developing model contract clauses and interoperability guidance to support switching across providers.

Public sector buyers and regulated industries have the most at stake. They face exit decisions that trigger retrieval, snapshot, network and support charges that are not covered by egress waivers. Customers locked into multi year commitment discounts can still incur penalties if they leave early. Firms that rely on Microsoft enterprise software also face portability limits that raise the effective price of hosting on non Azure clouds.

Regulatory clock is running

The UK Competition and Markets Authority opened a market investigation into public cloud services after Ofcom’s 2023 referral. Its published issues statement highlights technical and financial barriers to switching and names AWS and Microsoft as holding significant shares. The European Commission has said it will monitor Data Act compliance through national authorities and can pursue penalties for violations under member state enforcement regimes.

Big cloud providers are likely to revise contract language again as 2027 approaches. Until then, the documents show a narrow promise. Egress can be free if customers qualify, but the meter still runs on how workloads are moved and where licensed software can go. The Commission’s model clauses and any CMA remedies will determine how much of that cost structure survives.