As the EU Data Act takes effect on September 12, 2025, Google Cloud has responded by eliminating data transfer fees for EU and UK customers to promote multicloud adoption and operational flexibility.

Google Cloud launched 'Data Transfer Essentials,' a free service enabling data transfer between Google and other cloud providers, supporting the EU's goal of easier provider switching and increased competition.

This initiative aligns with the EU's broader efforts to reduce barriers to cloud interoperability and data mobility, challenging dominant players like AWS and Microsoft Azure.

Meanwhile, industry critics highlight that Microsoft's restrictive licensing practices hinder customer choice and competition, raising concerns about innovation and market fairness in the EU.

Despite ongoing legal and regulatory challenges, Alphabet's stock has risen by 2.47% to $239.94, with a year-to-date increase of 25.7%, amid issues like monopolistic practices in digital advertising and recent court rulings.

In June 2025, a Microsoft executive admitted that data stored in the EU cannot be guaranteed immune from US government requests, exposing unresolved sovereignty issues.

Google Cloud's market share remains around 10% in Q1 2025, lagging behind AWS at 32% and Microsoft Azure at 23%, despite efforts to enhance multicloud strategies.

The new Data Transfer Essentials program offers configurable, zero-cost metered data transfer for qualifying multicloud traffic, with other data billed at standard rates, aiming to lower costs and boost flexibility.

Google's move is a strategic response to the EU Data Act, emphasizing openness, interoperability, and digital sovereignty, and positioning itself as a champion of multicloud and hybrid cloud solutions.

Google has a history of promoting openness, including waiving exit fees for customers and pioneering multicloud data solutions, reinforcing its commitment to reducing vendor lock-in.

This shift puts pressure on competitors like Microsoft, which introduced at-cost data transfer fees in August, and AWS, which offers reduced rates for EU customers, as regulators scrutinize licensing practices.

The move also responds to concerns about data sovereignty, with US laws like the CLOUD Act raising questions about data privacy and government access, despite fee reductions.