First: love that that's a thing, but I find the blog post hilarious:
We believe this choice must include the one to migrate your data to another cloud provider or on-premises. That’s why, starting today, we’re waiving data transfer out to the internet (DTO) charges when you want to move outside of AWS.
and later
We believe in customer choice, including the choice to move your data out of AWS. The waiver on data transfer out to the internet charges also follows the direction set by the European Data Act and is available to all AWS customers around the world and from any AWS Region.
But sure: it's out of their love for customer choice that they offer this now. The fact that it also fulfills the requirements by the EDA is purely coincidental, they would have done it for sure.
Remember folks: regulation works. Sometimes corporations need the state(s) to force their hand to do the right thing.
I second that. This practice comes from a time where domain names were expensive, in many ways: SNI didn't exist/wasn't wide-spread, so each domain name on HTTPS needed a dedicated IP, Certificates weren't democratized yet via letsencrypt/acme and most hosts were big enough to run multiple services, because virtualization wasn't as widely available yet. So putting apps on sub-paths made sense.
Now all of those things are basically dealt with and putting each app on its own sub-domain just makes way more sense.