The Data Act – New Switching Rights

Since 12 September 2025, the EU Data Act reshapes how providers of data processing services must handle customer switching. It isn’t just about SaaS – it applies to all cloud and data-processing services, from SaaS to IaaS, PaaS, and edge computing solutions. The goal: make it easier for customers to switch providers without being locked in.

Key obligations for providers:

• Termination rights: customers can terminate contracts with just 2 months’ notice – even mid-term – and expect smooth migration support and access to their data in usable, machine-readable formats.
• Migration support & data retrieval: providers must support migration for at least 30 days (up to 7 months if technically necessary) and allow at least 30 days for customers to retrieve their data afterwards.
• Migration fees: fees are allowed only until January 2027, and even then must be transparent and cost-based; after that, switching must be free.
• Prepaid fees: prepaid fees can still be retained in case of early termination, but only if clearly defined in the contract.

Next steps?

• Providers will need to review and update standard contracts to include statutory switching rights, data export provisions, and clear rules on prepaid fees/penalties.
• Providers will need to make sure their systems allow structured, machine-readable data export and that migration processes are operational.

Want to know more and/or have a scan on your current agreements to update them? Do not hesitate to contact Cresco’s innovation team via [email protected].