Google Cloud scraps transfer fees to win multicloud users

Google Cloud has rolled out a new Data Transfer Essentials plan, allowing customers to move workloads across multiple clouds without paying transfer fees. The move comes ahead of the EU Data Act on 12 September 2025, intended to strengthen competition across the cloud market.

Under the new rules, providers must charge data transfer fees only ‘at cost.’ While Microsoft and Amazon have already taken steps to comply, Google has gone further by removing the charge altogether.

The company said the change is aimed at supporting businesses with multicloud strategies, offering more flexibility, and reducing downtime in critical workloads.

The initiative also positions Google as more aligned with regulatory goals, particularly compared with Microsoft, which has faced scrutiny over restrictive licensing practices. Google said qualifying traffic will now be billed at zero cost, while other transfers remain charged at existing rates.

The announcement follows strong growth in Google Cloud’s business, especially from AI firms like OpenAI and Anthropic. Alphabet’s cloud contracts are valued at around $106 billion, with CEO Thomas Kurian projecting $58 billion in revenue conversion within two years.

Alphabet’s stock price rose 2.47% following the update, reaching $239.94, as investors responded positively to both growth prospects and regulatory positioning.

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