AWS, Azure Egress Fees Drop Amid EU Regulatory Pressure

AWS, which once charged up to $0.09/GB for data transfer to the public internet, has announced plans to remove egress fees for customers migrating data to other providers or on-premises. This strategic move follows Google Cloud's similar announcement in January. Major cloud providers historically maintained significant egress fees, effectively locking in customers and hindering multi-cloud adoption. These charges made data migration costly. Now, providers are proactively dismantling these revenue streams to preempt stricter EU regulation and potential 'gatekeeper' designations. The EU's assertive regulatory stance appears to be successfully fostering a more open and competitive cloud market, potentially setting a precedent for global tech regulation.

The High Cost of Cloud Lock-in

Cloud providers have historically imposed significant internal data transfer costs. Data transfer between AWS regions, for instance, costs approximately $0.02–$0.09/GB, depending on source and destination, according to Nops. Similarly, transfers between Azure regions and intra-continental transfers within North America/Europe are charged $0.02/GB, according to Tatacommunications. These substantial inter-regional charges have historically contributed to vendor lock-in, making multi-cloud strategies or migrations prohibitively expensive for many enterprises. Cloud customers, long held captive by punitive egress fees like AWS's historical $0.09/GB to the public internet, are finally gaining the leverage to switch providers without incurring exorbitant costs, fundamentally shifting market power from providers back to enterprises.

Expanding Free Tiers and Easing Migration

AWS has steadily expanded its free tiers for data transfer. As of 2025, the free tier for data transfer out to the internet will expand to 100 GB per month, according to Nops, building on the 100 gigabytes in free data egress per month provided since 2021, per Forrester. The initial 1 GB of data transfer to the public internet per month remains free, as detailed by Nops. These expansions aim to reduce the 'stickiness' of cloud platforms, offering customers more flexibility in data management. This shift demonstrates a move towards customer retention through value rather than lock-in, a direct consequence of regulatory pressure. It signals a future where cloud providers must compete more aggressively on service and cost, rather than relying on egress fees as a barrier to exit.

While external egress fees for migration are being targeted for removal, other internal data transfer costs within cloud ecosystems persist. For instance, regional VNET peering costs $0.01/GB for both inbound and outbound traffic, according to Tatacommunications (as of 2021). Inter-zone transfers between availability zones also cost $0.01/GB for both ingress and egress, as detailed by Tatacommunications (as of 2021). AWS similarly charges approximately $0.01/GB per direction for data transfer between Availability Zones, even within the same region, according to Nops (as of 2021). These ongoing charges for internal data movement confirm that cloud providers still monetize data flow within their platforms, even as external egress fees diminish. This means customers must remain vigilant about the true total cost of ownership, as the focus shifts from exit costs to operational data management expenses within a single cloud environment.