Cloud Switching

Chapter VI of the Data Act | For providers and customers of cloud services

---

What is Cloud Switching?

Data Act Chapter VI introduces the rights of cloud service customers to switch to another provider (or to an on-premise solution) without disproportionate barriers. The aim is to eliminate vendor lock-in and strengthen competition in the cloud services market.

Who does it apply to?

Data Processing Services (scope)

These service models can fall within Article 2(8). The examples illustrate product types; assess the actual service and Article 31 exceptions before determining its obligations.

Service type	In scope	Examples
IaaS (Infrastructure as a Service)	Assess service	AWS EC2, Azure VMs, GCP Compute
PaaS (Platform as a Service)	Assess service	Heroku, Azure App Service, GCP App Engine
SaaS (Software as a Service)	Assess service	Salesforce, ServiceNow, Slack, CRM systems
Edge computing	Assess service	IoT platforms, edge nodes
Data warehousing	Assess service	Snowflake, Databricks, BigQuery

Extraterritorial applicability

GEOGRAPHIC SCOPE

Data Act cloud switching applies to:

• EU providers offering services in the EU
• US providers offering services to customers in the EU
• Any provider with EU customers
• Regardless of where data is processed

Consequence: Obligations depend on the service meeting Article 2(8) and being supplied to customers in the Union (Art. 1(3)(f)), with Article 31 exceptions. Small provider size alone does not remove these obligations.

Scope and exceptions

Assess the Article 2(8) definition of a data processing service. Under Article 31(1), the duties in Article 23(d), Article 29 and Article 30(1) and (3) do not apply where most main features are custom-built, or all components developed, for an individual customer and the service is not offered at broad commercial scale through the provider’s service catalogue. The remaining Chapter VI duties still apply. Limited non-production testing/evaluation versions are excluded from Chapter VI under Article 31(2). Before contracting, the provider must explain which duties do not apply (Art. 31(3)). DORA-regulated customers are not generally excluded. Software supplied purely for the customer’s own on-premises operation is not automatically a provider-operated data processing service; the actual service model decides.

Customer rights

Switching Rights (from 12.9.2025)

CUSTOMER - NEW RIGHTS

RIGHT TO SWITCH AT ANY TIME

• The customer can request switching at any time
• Regardless of the contract period
• The maximum notice period is 2 months; the separate switching transition normally must not exceed 30 calendar days (Art. 25), with the specified technical-impossibility and customer-extension rules
• Applies from 12 September 2025 also to existing contracts; Article 50 does not give Chapter VI a separate transition for older contracts

RIGHT TO DATA

• Exportable data and digital assets are defined separately in Article 2(38) and (32); apply Articles 23 and 25 and their exclusions
• Applications qualify as digital assets where the customer has a right to use them independently of the source service contract; Article 30(6) protects intellectual property, trade secrets and security
• Structured, commonly used, machine-readable export under the conditions of Article 30(5)
• Metadata and configurations only within the scope of exportable data or digital assets and applicable exclusions

RIGHT TO ASSISTANCE

• Reasonable assistance to the customer and its authorised third parties (Art. 25(2)(a)(i))
• Support for the exit strategy and relevant information, including methods, formats and known limitations (Arts. 25(2)(b) and 26)
• Transition periods under Article 25, including the customer’s right to extend the period once
• For infrastructure services under Article 30(1), appropriate documentation, technical support and, where relevant, necessary tools

PROTECTION AGAINST UNFAIR FEES

• Where Article 29 applies, reduced switching charges cannot exceed directly incurred switching costs before 12 January 2027
• From 12 January 2027, Article 29 prohibits switching charges; the Article 31(1) exception remains relevant
• Early-termination penalties are separate; assess validity and proportionality under applicable contract law
• Clear pre-contract information about service charges, early-termination penalties and permitted switching charges (Art. 29(4))

Timeline

Date	Scope
12 September 2025	Main applicability, including Chapter VI switching
After 12 September 2026	Article 3(1) design/access duty for connected products and related services placed on the market after this date
12 January 2027	Article 29 prohibition of switching charges; distinct from ordinary service fees or separately applicable early-termination charges
From 12 September 2027	Chapter IV also applies to contracts concluded on/before 12 September 2025 if indefinite or expiring at least 10 years from 11 January 2024 (Art. 50)

There is no general “enhanced interoperability in September 2026 / full portability standardisation in September 2027” milestone. Technical duties follow Articles 30 and 35 and relevant standards/specifications.

Provider obligations

Article 24 limits the duties in Articles 23, 25, 29, 30 and 34 to the source provider’s services, contracts or commercial practices. All parties, including the destination provider, must cooperate in good faith under Article 27. Apply the service-specific exceptions in Article 31.

Contractual obligations

CLOUD PROVIDER - CONTRACTUAL OBLIGATIONS

CONTRACTUAL REQUIREMENTS (from 12.9.2025, Arts. 25 and 28): The written contract must be available before signature in a form the customer can store and reproduce. It must cover:

• Switching on request, a notice period of no more than 2 months and normally no more than 30 calendar days for transition after notice; the technical-impossibility procedure and one customer extension under Article 25(4)–(5)
• Reasonable assistance, due care for continuity, continued contractual functions, information on known continuity risks and a high level of security during switching and retrieval
• Support for the customer’s exit strategy, including relevant information
• Contract termination and notification after successful switching, or at the end of notice if the customer chooses erasure instead of switching
• All transferable data and digital-asset categories, and an exhaustive list of excluded internal-service data categories where trade secrets are at risk; exclusions must not impede or delay switching
• A retrieval period of at least 30 calendar days after transition
• Complete erasure of exportable data and digital assets generated directly by, or directly relating to, the customer after the retrieval period or a later agreed period, provided switching was successfully completed (Art. 25(2)(h))
• Permitted switching charges, and the customer’s options to switch provider, move on-premises or erase data after notice
• Links to the provider’s information about infrastructure jurisdiction and safeguards against conflicting international governmental access/transfers (Art. 28)

Information about available methods, formats and known limitations, and a link to the current online data-structure/format register, must also be provided under Article 26. A technical support contact can be added as a practical arrangement.

CHECK CONTRACTUAL BARRIERS:

• Restrictions on switching against Articles 23–25
• Charges against Article 29 and transparency duties
• Data-access/use terms within Article 13: assess unilateral imposition, the statutory unfairness tests and contract transition rules
• Renewal and exclusivity clauses according to the actual contract and applicable law; their labels alone do not establish a blanket Data Act prohibition

Technical obligations

Obligation	Description	Applicability
IaaS functional equivalence	Take all reasonable measures available to facilitate functional equivalence for the same service type, with appropriate information, documentation, support and tools (Art. 30(1))	From 12 September 2025, subject to Art. 31
Other service types	Make open interfaces available free of charge on equal terms to customers and relevant destination providers (Art. 30(2))	From 12 September 2025, subject to Art. 31
Export format	On request, export all exportable data in a structured, commonly used, machine-readable format where the relevant specifications or standards have not been published (Art. 30(5))	Apply the conditions of Art. 30(5)
Information and assistance	Information and the online register under Art. 26; reasonable assistance under Art. 25(2)(a)(i)	From 12 September 2025, subject to Art. 31
Interoperability specifications	For non-IaaS services, compatibility under Art. 30(3) after the relevant references are published under Art. 35(8)	No earlier than 12 months after publication in the Union repository

Functional equivalence means a minimum level of functionality for the same service type (Art. 2(37)); it is not a guarantee that every application behaves identically after migration. Article 30(6) does not require new technologies or services, transfer of digital assets protected by intellectual property rights or trade secrets, or compromising security and integrity.

Switching charges and other contract payments

Where Article 29 applies, it permits only reduced switching charges no greater than directly incurred switching costs before 12 January 2027; from 12 January 2027 switching charges are prohibited. Ordinary service charges and early-termination penalties are separate categories. Article 29(4) requires pre-contract information about those charges and penalties; their validity and proportionality need assessment under the applicable contract law. Do not promise that every remaining fixed-term payment disappears or that the Data Act universally limits it to a particular “net loss” formula.

Implementation for SaaS providers

Checklist for SaaS companies

PHASE 1: CONTRACT REVIEW (illustrative project stage)

• Audit all customer contracts
• Identify problematic clauses
• Revise Terms of Service
• Update SLA
• Prepare addendum for existing contracts
• Legal review

PHASE 2: TECHNICAL IMPLEMENTATION (illustrative project stage)

• Data export API/tool
• Documentation of export formats
• Self-service export for customers
• Metadata export (configuration, settings)
• Bulk export function
• Export testing

PHASE 3: PROCESS CHANGES (illustrative project stage)

• Switching request process
• Technical assistance workflow
• Switching cost calculation
• Support team training
• Switching timeline: notice max 2 months; transition normally max 30 calendar days, with Art. 25 exceptions
• Escalation process

PHASE 4: COMMUNICATION (illustrative project stage)

• Update pricing page
• Customer communication
• FAQ for switching
• Help centre documentation
• Sales enablement

Examples of technical options — select for the product and export security

Aspect	Example or scope to assess
Data format	JSON, CSV, XML, SQL dump
Completeness	Exportable data and digital assets within the statutory scope; explain any valid exclusions
Metadata	Configuration, settings, permissions
Access	API + UI for self-service
Speed	Without undue delay
Documentation	Schema, data dictionary, import guide

---

Implementation for cloud service customers

Exercising new rights

1. AUDIT OF CURRENT CONTRACTS

• Identify lock-in clauses
• Determine exit costs
• Map the switching process
• Document non-compliance with the Data Act

2. NEGOTIATION WITH THE PROVIDER

• Reference Data Act rights
• Require transparent exit costs
• Request data export functionality
• Negotiate better terms

3. PREPARATION OF EXIT STRATEGY

• Identify alternative providers
• Test data export
• Plan migration
• Document switching costs

4. MONITORING FROM 12.1.2027

• Check that switching charges are zero where Article 29 applies; distinguish the Article 31(1) exception and cost-based data-egress charges for parallel use under Article 34(2)
• Consider a complaint to the competent authority under Article 38(1)
• Leverage your negotiating position

Synergies with Tech Sovereignty

Tech Sovereignty goal	Data Act instrument
Reduce vendor lock-in	Switching rights (Art. 23-25)
Viable exit	Export/switching duties (Arts. 23, 25, 30)
Low switching costs	Prohibition of switching charges from 12 January 2027 (Art. 29)
Multi-vendor strategy	Parallel use and interoperability (Arts. 30, 34, 35)
Fair data-access/use terms	Art. 13 covers qualifying unilaterally imposed B2B terms, subject to Art. 50; switching contracts are covered by Art. 25

Practical approach:

1. Tech Sovereignty Assessment identifies lock-in
2. Data Act provides legal leverage
3. The combination enables real change

The Data Act is the legal instrument for implementing a Tech Sovereignty strategy. While Tech Sovereignty defines goals and principles, the Data Act provides legally enforceable tools to achieve them.

---

Examples

Example 1: SaaS CRM switching

SCENARIO: A company wants to switch from a large CRM to another provider

This example shows what to check in a specific contract. It does not guarantee a free exit or the portability of every configuration.

Aspect	Example of an existing constraint	What to assess under the Data Act
Contract	Fixed-term contract with an early-termination payment	Maximum notice period for initiating a switch is 2 months; assess the permissibility of termination payments separately
Data export	Basic only (CSV of contacts)	Exportable data/assets; verify workflows and proprietary service components individually
Configuration	Some settings depend on the original service	Assess exportable data and digital assets and exclusions protecting the provider or third parties
Notice period	6 months	Max 2 months
Assistance	Vendor unresponsive	Reasonable assistance required (Art. 25(2)(a)(i))
Switching charges	May exist within transitional limits	Prohibited from 12 January 2027; other service/termination payments are separate

Example 2: Multi-cloud strategy

SCENARIO: An enterprise wants to implement multi-cloud

When planning multiple clouds, assess:

• Which data and digital assets can actually be moved.
• Available formats, interfaces and interoperability.
• Necessary changes to applications or infrastructure.
• Timelines, assistance and the full switching budget, including permissible payments. For parallel use, Article 34(2) permits data-egress charges limited to incurred costs.
• Functionality and security after the move.

---

Penalties

Violation	Penalty	Enforcement
Blocking switching	National penalties	National authority
Charges breaching Art. 29	National penalties under Art. 40; assess contractual remedies separately under applicable law	Competent authority; courts for applicable judicial remedies
Failure to provide data	National penalties	National authority
Insufficient assistance	National penalties	National authority

Note: Specific penalty amounts are set by member states. They must be “effective, proportionate and dissuasive.”

---

Synergies with NIS2

Supply Chain Resilience

NIS2 + DATA ACT = RESILIENCE

NIS2 (Art. 21) requires, for entities within national implementation scope:

• Supply chain security
• Vendor risk assessment
• Business continuity
• Incident response readiness

DATA ACT ENABLES:

• Contractual support for an exit strategy
• Switching within Article 25 periods; there is no special accelerated incident-switching right
• Support for parallel use and reduced dependence, within the statutory scope
• Due care for continuity during switching; migration and continuity still require planning and testing

Combined use: Connect the available switching rights to a tested exit and continuity plan. This can reduce dependence; documentation alone does not guarantee successful migration or continuity.

---

Next steps

1. For providers: Go through the implementation checklist
2. For customers: Audit your current contracts
3. Go through the complete checklist
4. Link to Tech Sovereignty strategy

---

Sources

• Data Act Chapter VI (EUR-Lex)
• Latham & Watkins: Cloud Switching
• Bird & Bird: SaaS Switching Rights
• DLA Piper: Switching Rights

---

Disclaimer

This content is for informational purposes only and does not constitute legal advice. For your organisation’s specific situation, we recommend consulting a qualified lawyer.

---

Content reviewed: 6 September 2026. Primary sources: Data Act — Arts. 1–7, 13, 23–31, 35, 40, 50, Commission Data Act FAQ.