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Microsoft will no longer charge data exit fees to customers leaving Azure cloud, in line with its rivals AWS and Google Cloud. A way to comply with the EU Data Act, which comes into force in September 2025.
Microsoft is ending cloud exit fees for customers who leave Azure to switch to another cloud provider or to an on-premises data center. The Richmond-based company confirms this in a blog post.
To leave Azure, you must inform Microsoft of the date you plan to start transferring and the amount of data you plan to transfer.
Once connected, 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 exit fees resulting from the transfer of data from Azure Storage outside Azure can be credited.
Standard fees 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), this partner will be responsible for the credit application procedure, the data transfer, the cancellation of applicable subscriptions and the credit granting to the customer.
EU Data Act compliance
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 this month, public cloud provider AWS also announced similar plans to remove 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 subjects to a rigorous approval process and have just 60 days to complete the migration.
The forthcoming European Data Act requires public and private cloud service providers to remove "barriers to effective transition" between their own cloud services and competing services, including commercial, contractual, technical or organizational barriers.
A response to the competition authorities.
The cloud market has been the target of several debates and investigations regarding anti-competitive issues.
The UK Competition and Markets Authority launched an investigation into the market after Ofcom identified a number of factors that make it difficult for customers to switch and use multiple cloud providers, including exit fees, repatriation charges and discounts to encourage customers to use a single provider.
In France, the Autorité de la concurrence 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 supported by suppliers.
According to the french authority, these fees could lead to a risk of customer lock-in in a fast-growing market, making it more difficult for cloud users to leave their primary provider or to use several providers in a multi-cloud environment.