Microsoft ends cloud exit fees.

Microsoft will no longer charge data exit fees to customers leaving its Azure cloud, following in the footsteps of its rivals AWS and Google Cloud. This is a way of complying with the EU Data Act.

Microsoft is ending cloud exit fees for customers who leave Azure to switch to another cloud provider or an on-premises data center. This was confirmed by the Richmond-based company in a blog post.

To leave Azure, you must notify Microsoft of the date you plan to begin the transfer and the amount of data you plan to transfer.

Once you log in, you have 60 days to comply with the start date and must then cancel all Azure subscriptions. You can then request a credit for your exit fees.

Please note that only egress charges resulting from the transfer of data from Azure Storage outside of Azure are eligible for credit.

Standard charges for Express Route, Express Route Direct, VPN, Azure Front Door, and Azure Content Delivery Network (CDN) services are not included in this credit offer.

Furthermore, if a customer purchases Azure services through a reseller partner or MSP (e.g., Capgemini's Blue offering), that partner will be responsible for the credit request process, data transfer, cancellation of applicable subscriptions, and issuance of credit to the customer.

Compliancy with regard to the EU Data Act regulation

The exemption on data transfer fees is intended to comply with the EU Data Act and is available to all Azure customers worldwide and from any Azure region.

Earlier, public cloud provider AWS also announced similar plans to eliminate some of its data transfer fees for customers.

Unlike Google and Microsoft, it appears that customers are not required to leave AWS completely, but are subject to a rigorous approval process and have only 60 days to complete the migration.

The European data law requires public and private cloud service providers to eliminate “barriers to effective switching” between their own cloud services and competing services, including commercial, contractual, technical, or organizational barriers.

A decision following a request from the competition authorities

The cloud market has been the subject of several debates and investigations into its anti-competitive aspects.

The UK Competition and Markets Authority launched an investigation into the market after Ofcom identified several characteristics that make it difficult for customers to switch and use multiple cloud providers, including exit fees, repatriation fees, and discounts designed to encourage customers to use only one provider.

In France, the Competition Authority has identified cross-cutting competitive risks and highlighted scenarios involving specific competitive risks. The investigation showed that these “egress fees” are potentially disconnected from the costs directly incurred by suppliers. According to the Authority, these fees could create a risk of customer lock-in in a rapidly expanding market, making it more difficult for cloud users to leave their primary supplier or to use multiple suppliers at the same time in a multi-cloud environment.