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Google Ends Some Cloud Data Transfer Fees in EU and UK Ahead of Data Act

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Google announced Wednesday it will eliminate certain cloud data transfer fees in the European Union and Britain, just days before the EU Data Act takes effect on Friday.

Key Details

  • What’s changing?
    Google will no longer charge organizations for transferring data between Google Cloud and other providers under its new “Data Transfer Essentials” offer.

  • Why now?
    The EU Data Act requires providers to allow switching between clouds more easily, permitting them to charge transfer fees only “at cost.”

  • How Google differs:
    Unlike rivals, Google is offering these transfers at no cost, going beyond the minimum legal requirement.

Competitor Moves

  • Microsoft introduced at-cost fees in the EU last month.

  • Amazon Web Services (AWS) allows EU customers to request reduced data transfer rates in eligible cases.

Strategic Context

  • The cloud market remains dominated by AWS, Microsoft Azure, and Google Cloud, but regulators in both the EU and UK are intensifying scrutiny over competition.

  • Britain’s antitrust watchdog recently criticized Microsoft’s licensing practices for disadvantaging smaller providers.

Why It Matters

  • Many organizations rely on multicloud strategies for resilience and flexibility, making transfer costs a significant factor.

  • By scrapping fees entirely, Google is positioning itself as the most customer-friendly provider ahead of stricter EU oversight.

Amazon Web Services to Deliver Up to $1 Billion in Savings to U.S. Government for Cloud Modernization

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Amazon Web Services (AWS) has entered into an agreement with the U.S. General Services Administration (GSA) to provide federal government agencies with up to $1 billion in savings through incentives aimed at cloud adoption, IT modernization, and training programs. This initiative is set to run through the end of 2028 and is designed to accelerate large-scale digital transformation across government departments while fostering innovation in artificial intelligence.

The U.S. federal government spends over $100 billion annually managing and updating its IT infrastructure, a process historically challenged by outdated systems. AWS, which supports more than 11,000 government agencies worldwide, has secured billions in contracts to assist in transitioning federal agencies to cloud-based platforms.

The $1 billion incentive credits will be distributed across civilian federal agencies and include savings on core AWS cloud services, modernization efforts, and training resources. AWS CEO Matt Garman described the deal as a “significant milestone” in government digital transformation, highlighting the provision of expert support and training to facilitate cloud migration.

The agreement aligns with broader federal efforts to reduce IT costs, improve efficiency, enhance innovation, and maintain U.S. leadership in AI technologies. In recent years, the Pentagon has awarded multi-billion dollar cloud contracts to AWS and other tech giants such as Microsoft, Google, and Oracle. This follows the Joint Warfighting Cloud Capability program, a successor to the controversial $10 billion JEDI contract, which AWS contested after it was awarded to Microsoft amid allegations of political interference.

Google Set to Offer Significant Cloud Service Discounts to U.S. Government, FT Reports

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Google is preparing to offer steep discounts on its cloud computing services to the U.S. government, with a deal possibly finalized within weeks, according to the Financial Times. This move aligns with President Donald Trump’s broader push to reduce federal spending.

Last week, the Wall Street Journal reported that Oracle will provide federal agencies with a 75% discount on its license-based software and a substantial reduction on its cloud services through the end of November. Google’s upcoming cloud contract is expected to offer similar discounts, the FT said, citing a senior official from the General Services Administration (GSA). Discounts from Microsoft Azure and Amazon Web Services are also anticipated to follow soon.

The GSA official told the FT, “Every single one of those companies is totally bought in, they understand the mission. We will get there with all four players.”

Neither Google nor the GSA immediately responded to Reuters’ requests for comment outside business hours. In April, Google agreed to provide a 71% discount on its business apps package for federal agencies through September 30, a deal that could yield up to $2 billion in government-wide savings if broadly adopted.