SaaS and digital service providers sit at the center of the new regulatory framework introduced by the Data Act.<\/p>\n
Starting in 2025, their contractual, technical, and pricing models will need to evolve to meet new requirements around data portability, interoperability, and customer mobility. The regulation fundamentally reshapes how SaaS companies design their architectures, structure their offerings, and secure long\u2011term commercial relationships.<\/p>\n
The analysis below highlights the key changes to anticipate and the areas where strategic planning will be essential.<\/p>\n
The Data Act entered into force in January 2024 and became fully applicable in September 2025.<\/p>\n
Any organization offering a data\u2011processing service\u2014of any kind\u2014within the EU or to customers located in the EU falls under its scope. This includes, in particular:<\/p>\n
In practice, your organization may be affected even if you are not acting as a cloud provider.<\/p>\n
An Exception for Highly Customized Services ?<\/strong><\/p>\n Article 25 of the Data Act provides a limited exemption for services whose core functionalities are developed specifically for a single customer and are not deployed at scale. In such cases, the provider may be exempt from certain switching\u2011related obligations.<\/p>\n However, the customer\u2019s right to terminate with two months\u2019 notice still applies\u2014even for fully bespoke solutions. Fixed\u2011term commitments will therefore need to be reconsidered.<\/p><\/blockquote>\n The Data Act distinguishes several types of fees related to provider switching.<\/p>\n Switching Fees<\/strong><\/p>\n Fees charged for moving from one service to another must be strictly cost\u2011based until January 12, 2027, after which they will be prohibited\u2014except for highly customized services.<\/p>\n Exit Fees<\/strong><\/p>\n Fees charged when leaving a service will become difficult to justify if they create dependency or discourage customer mobility.<\/p>\n What Remains Possible<\/strong><\/p>\n Providers may still:<\/p>\n The challenge will be designing pricing models that remain both compliant and commercially viable.<\/p>\n One of the major innovations of the Data Act is the universal right for any customer to terminate any contract with two months\u2019 notice\u2014at any time, including for customized solutions.<\/p>\n Fixed\u2011term contracts remain possible, but their stability will now depend on the strategic use of proportionate early\u2011termination penalties.<\/p>\n Important note: the customer cannot exercise the termination right for convenience. It must correspond to an actual switch to another provider or a move to an on\u2011premises infrastructure (the customer\u2019s own data center).<\/p><\/blockquote>\n Penalties Under the Data Act<\/strong><\/p>\n The Data Act explicitly allows such penalties, provided they:<\/p>\n In practice, these penalties may become the primary tool for stabilizing long\u2011term commitments once switching and exit fees are phased out.<\/p>\n Designing defensible, economically sound, and proportionate penalties will require careful analysis. There is no one\u2011size\u2011fits\u2011all solution.<\/p><\/blockquote>\n The Data Act introduces a framework to regulate contractual terms unilaterally imposed on business customers when they may restrict portability or create an imbalance in the relationship.<\/p>\n Key clauses to reassess include:<\/p>\nSwitching Fees, Exit Fees, and Pricing Pressure<\/strong><\/h2>\n
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Two\u2011Month Notice Period and Securing Fixed\u2011Term Contracts<\/strong><\/h2>\n
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Unfair Terms and Contractual Balance<\/strong><\/h2>\n