Cloud Switching

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

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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)

Service type	In scope	Examples
IaaS (Infrastructure as a Service)	YES	AWS EC2, Azure VMs, GCP Compute
PaaS (Platform as a Service)	YES	Heroku, Azure App Service, GCP App Engine
SaaS (Software as a Service)	YES	Salesforce, ServiceNow, Slack, CRM systems
Edge computing	YES	IoT platforms, edge nodes
Data warehousing	YES	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: AWS, Azure, GCP, Salesforce, ServiceNow must comply. Smaller SaaS providers with EU customers as well.

Exceptions

Exception	Reason
DORA-regulated entities	Financial sector has its own rules
Purely on-premise	Not a “data processing service”
Internal IT	Not provision to third parties

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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 provider must initiate the process within 2 months
• Applies also to contracts concluded before 12.9.2025

RIGHT TO DATA

• Export of all customer data
• Export of applications (where possible)
• Machine-readable format
• Including metadata and configurations

RIGHT TO ASSISTANCE

• Technical support during migration
• Documentation for switching
• Sufficient transition period
• Responses to technical queries

PROTECTION AGAINST UNFAIR FEES

• Switching charges max = direct costs (until 2027)
• Switching charges = PROHIBITED (from 12.1.2027)
• Early termination penalty must be proportional
• Transparent price list in advance

Timeline of switching rights

Date	Change
12.9.2025	Switching rights active, charges max = direct costs
12.9.2026	Enhanced interoperability requirements
12.1.2027	PROHIBITION of switching fees (charges = 0)
12.9.2027	Full data portability standardisation

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Provider obligations

Contractual obligations

CLOUD PROVIDER - CONTRACTUAL OBLIGATIONS

MANDATORY CLAUSES (from 12.9.2025):

• Customer’s right to switch at any time
• Maximum notice period (2 months)
• Description of the switching process
• List of exportable data and formats
• Timeframe for completing switching
• Switching charges price list (transparently)
• Contact for technical assistance

PROHIBITED CLAUSES:

• Prohibition or restriction of switching
• Disproportionate exit fees
• Exclusive rights to data
• Automatic renewal without opt-out
• Non-transparent switching costs

Technical obligations

Obligation	Description	Deadline
Data export	API or tool for data export	12.9.2025
Documentation	Technical documentation for migration	12.9.2025
Formats	Standard, interoperable formats	12.9.2025
Assistance	Technical support during switching	12.9.2025
Interoperability	Open standards for cloud services	12.9.2026

Pricing obligations

SWITCHING CHARGES - TIMELINE

UNTIL 12.1.2027:

• Switching charges PERMITTED
• But MAX = provider’s direct costs
• Must be transparent and known in advance
• Must not constitute a barrier to switching

FROM 12.1.2027:

• Switching charges PROHIBITED
• Provider may not charge for switching
• Only proportional early termination penalty

EARLY TERMINATION PENALTY (at all times):

• May be charged
• Must be proportional
• Must not = entire remaining contract value
• Only actual losses (net of savings)
• Transparently stated in the contract

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Implementation for SaaS providers

Checklist for SaaS companies

PHASE 1: CONTRACT REVIEW (by 28.2.2026)

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

PHASE 2: TECHNICAL IMPLEMENTATION (by 31.5.2026)

• 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 (by 31.7.2026)

• Switching request process
• Technical assistance workflow
• Switching cost calculation
• Support team training
• SLA for switching (max 2 months)
• Escalation process

PHASE 4: COMMUNICATION (by 12.9.2026)

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

Technical export specifications

Aspect	Requirement
Data format	JSON, CSV, XML, SQL dump
Completeness	All customer data, not just a subset
Metadata	Configuration, settings, permissions
Access	API + UI for self-service
Speed	Without undue delay
Documentation	Schema, data dictionary, import guide

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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

• Switching fees should be 0
• Report violations to authorities
• 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	Data portability (Art. 24)
Low switching costs	Prohibition of fees from 2027 (Art. 25)
Multi-vendor strategy	Interoperability (Art. 26-31)
Fair contractual terms	Unfair terms protection (Art. 13)

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.

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Examples

Example 1: SaaS CRM switching

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

Aspect	BEFORE DATA ACT	AFTER DATA ACT
Contract	3-year, exit = 100% of remaining value	Switching at any time, max 2 months’ notice
Data export	Basic only (CSV of contacts)	Complete including workflows
Configuration	Lost	Exportable
Notice period	6 months	Max 2 months
Assistance	Vendor unresponsive	Technical assistance mandatory
Fees	High	0 from 2027

Example 2: Multi-cloud strategy

SCENARIO: An enterprise wants to implement multi-cloud

Data Act enables:

• Easier workload migration between clouds
• Standardised export formats
• Interoperability between providers
• Exit without prohibitive costs
• Negotiating leverage with hyperscalers

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Penalties

Violation	Penalty	Enforcement
Blocking switching	National penalties	National authority
Disproportionate fees	Contractual invalidity	Courts
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.”

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Synergies with NIS2

Supply Chain Resilience

NIS2 + DATA ACT = RESILIENCE

NIS2 REQUIRES (Art. 21):

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

DATA ACT ENABLES:

• Viable exit strategy (not theoretical)
• Rapid switching during an incident
• Multi-vendor without lock-in
• Continuity without dependency

COMBINED EFFECT: Genuine resilience, not just documentation. Vendor failure does not equal business failure. Regulatory compliance with both regulations.

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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

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Sources

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

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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.

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