regulation
EU Data Act and Cloud Switching: How the Rules Change SaaS Exit Costs
By Art Kukharenko · Published · Updated
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Browse regulation resourcesThe EU Data Act (Regulation (EU) 2023/2854) obliges providers of cloud and software-as-a-service (SaaS) "data processing services" to let customers switch to another provider or to on-premise infrastructure: up to two months' notice, a transition period of at most 30 days, at least 30 days to retrieve data, and no switching charges from 12 January 2027. For a customer data platform (CDP) or email service provider (ESP), that makes exit rights enforceable terms.
Who this is for: CTOs, procurement leads and DPOs renegotiating or exiting SaaS customer-data contracts. Part of the regulation hub.
What the Data Act requires: Chapter VI, Articles 23 to 31
Chapter VI, "Switching between data processing services", runs from Article 23 to Article 31 1. It has applied since 12 September 2025 (Art. 50) and covers providers "irrespective of their place of establishment" when they serve customers in the Union (Art. 1(3)(f)) 1. Member State authorities enforce it, set the penalties (Art. 40(1)) and handle complaints (Art. 38) 1.
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| Article | What it requires | What it means for you |
|---|---|---|
| 23 | Remove obstacles to ending the contract, signing with another provider, porting exportable data and digital assets, and unbundling services | No contractual or technical blockers to leaving |
| 25 | Written terms: notice of at most 2 months; transition of at most 30 calendar days; at least 30 days to retrieve data afterwards; exhaustive list of exportable data; guaranteed erasure | The core exit clause set; see the clause list below |
| 26 | Describe switching procedures, formats and known limits; point to an online register of data structures and standards | Ask for the register |
| 28 | Publish the jurisdiction of the infrastructure and the measures against unlawful international government access, and reference both in the contract | Feeds your transfer assessment |
| 29 | Switching charges limited to direct costs until 12 January 2027; none after | Budget the exit at cost now, at zero later |
| 30 | Infrastructure services: reasonable measures for functional equivalence. Other services: free open interfaces, compatibility with standards 12 months after they are published, and export in a structured, commonly used, machine-readable format if no standard exists | What a SaaS vendor owes |
| 31 | Custom-built services and time-limited test versions get a lighter regime; providers must say which obligations do not apply | Check your order form |
Notice, transition and retrieval periods
- Notice. You start the switching process; the contract may require notice of at most two months (Art. 25(2)(d)). At the end of that period you confirm whether you will move to another provider, move to on-premise infrastructure or erase your data (Art. 25(3)).
- Transition. The provider must complete the switch within 30 calendar days of the notice period ending, giving reasonable assistance, keeping the service running and keeping security high (Art. 25(2)(a)). You may extend the transition once (Art. 25(5)).
- Infeasibility. If 30 days is technically unfeasible, the provider must say so within 14 working days of your request, justify it and propose an alternative of at most seven months (Art. 25(4)).
- Retrieval and erasure. You get at least 30 calendar days to retrieve data after the transition, then guaranteed full erasure of exportable data and digital assets (Art. 25(2)(g), (h)).
Does the Data Act apply to SaaS such as a CDP or ESP?
Yes. A "data processing service" is a digital service giving on-demand network access to a shared pool of configurable, scalable and elastic computing resources (Art. 2(8)) 1. The Commission's FAQ states that this covers infrastructure (IaaS), platform (PaaS) and software (SaaS) services, and that Chapter VI does not distinguish between types of SaaS 2. The test is whether you are a "customer" contracting for the service (Art. 2(30)).
Not every duty applies to every model:
- Functional equivalence (rebuilding comparable functionality at the destination) is an infrastructure-service duty only (Art. 30(1)) 12.
- SaaS and PaaS providers must offer open interfaces free of charge, be compatible with standards once published in the Union repository, and export data in a structured, commonly used, machine-readable format (Art. 30(2) to (5)) 125.
- No rebuild duty. The source provider's obligations are limited to its own services (Art. 24); it need not rebuild your configuration in the destination's environment 2.
- Switching targets include on-premise infrastructure (Art. 2(34), Art. 25(2)(a)) 1. Moving from a SaaS CDP to a customer-owned deployment is within scope.
Custom-built services are not fully excluded: Article 31(1) lifts only specified duties (Articles 23(d), 29, 30(1) and 30(3)), so open interfaces and data export still apply 12. A SaaS product that meets the "custom-built" test may get the lighter regime 2.
Switching charges, egress fees and 12 January 2027
From 11 January 2024 to 12 January 2027 providers may charge only reduced switching charges, capped at the costs directly linked to the switch. From 12 January 2027 they may charge none (Art. 29) 1. "Switching charges" exclude standard service fees and early termination penalties (Art. 2(36)); data egress charges for extracting data are inside the definition (Art. 2(35)) 1.
That does not mean every data-movement fee disappears; do not read the Data Act as "egress becomes free".
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| Item | Position | Source |
|---|---|---|
| Egress and other switching charges for a switch | Cost-based until 12 Jan 2027; none afterwards | Art. 29 1 |
| Standard subscription fees | Remain payable; not switching charges | Art. 2(36), recital 89 1 |
| Early termination penalties in fixed-term contracts | Allowed if proportionate; not switching charges | Recital 89 1 |
| Extra services you agree to buy at a price set in advance | Allowed | Recital 89 1 |
| Egress for in-parallel (multi-cloud) use | Allowed at cost, including after 12 Jan 2027 | Art. 34(2); FAQ 12 |
| Rebuilding your setup at the destination | Not owed by the source provider | Art. 24 12 |
The Commission's reasoning is that a parallel deployment implies constant egress rather than a one-off 2. If your architecture is multi-cloud, negotiate egress rates now.
Digital Omnibus: what is proposed, not law
The Commission's Digital Omnibus package of November 2025 proposes changes to the Data Act. According to a July 2026 law-firm analysis of the Council's consolidated compromise text, which can still change, the proposal would 3:
- add an exemption for "adapted standard services" (most features adapted to one customer) in contracts concluded on or before 12 September 2025, alongside the existing custom-built carve-out;
- exempt small and medium-sized enterprise (SME) and small mid-cap providers of non-infrastructure services from switching duties for those older contracts; infrastructure providers and the Article 29 charge regime stay in scope;
- let all providers include proportionate early termination penalties in fixed-term contracts;
- spare providers from renegotiating pre-12 September 2025 contracts before expiry, leaving unclear whether Article 29(4) to (6) apply and which charges survive after 12 January 2027.
What it means for CDP and ESP contracts
What counts as exportable data and digital assets?
"Exportable data" is input and output data, including metadata, directly or indirectly generated or co-generated by your use of the service, excluding the provider's or third parties' trade secrets and protected assets (Art. 2(38)). "Digital assets" are elements you have the right to use independent of the contract, including applications and, per the FAQ, configuration, security and access settings (Art. 2(32)) 12.
For a CDP or ESP, our reading is that this should include event history, unified profiles and identity-resolution outputs, computed traits, segment membership, consent and suppression records, send logs, and the configuration behind them: schemas, segment definitions, journeys, connectors and templates. The vendor's matching algorithms and model weights are protected. This is an interpretation, not settled law, so list each category in the contract. Article 25(2)(f) allows only an exhaustive list of exempt provider-internal categories, and exemptions may not delay switching.
Exit-readiness checklist
- Inventory every SaaS contract holding customer data: renewal date, notice terms, signing date (before or after 12 September 2025).
- Confirm each vendor is a data processing service and note any Article 31 exemption in the order form.
- Map the data you would need in a new environment: events, profiles, identity links, consent and suppression state, configuration.
- Obtain the vendor's switching documentation and format register (Art. 26).
- Run a test export and import into a scratch environment; record row counts, checksums and gaps.
- Verify consent state, suppression lists and opt-out timestamps survive export intact.
- Price the exit: standard fees through notice, any early termination penalty, agreed services, in-parallel egress.
- Prepare a switching-request template and keep the dated notice and the vendor's reply.
- Define the runbook (dual-run, cut-over, rollback, owner) and capture erasure certificates after retrieval.
- For financial entities, align with exit strategies under the Digital Operational Resilience Act (DORA); see DORA and your marketing stack.
For a longer sequence, see the 90-day plan for migrating off a SaaS CDP and the cloud exit template.
Clause list for CDP, ESP and martech agreements
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| Clause | What to write | Hook |
|---|---|---|
| Right to switch | Switch to another provider or on-premise, or erase, on written notice | Art. 25(2)(a), 25(3) |
| Periods | Notice of at most 2 months; 30-day transition; customer may extend once; provider infeasibility notice within 14 working days, capped at 7 months | Art. 25(2), (4), (5) |
| Exportable data | Exhaustive list including metadata, profiles, identity outputs, consent and suppression records, logs | Art. 2(38), 25(2)(e) |
| Digital assets | Configuration, schemas, segment and journey definitions, connectors, templates, access rules | Art. 2(32) |
| Exemptions | Provider-internal categories only, listed exhaustively, never delaying switching | Art. 25(2)(f) |
| Formats and interfaces | Open, documented, machine-readable export; free API access during transition | Art. 26, 30 |
| Fees | Cost-based before 12 Jan 2027, none after; schedule of any early termination penalty and the proportionality basis; egress rates for parallel use | Art. 29, 34(2) |
| Continuity | Assistance, service continuity and security during transition | Art. 25(2)(a) |
| Retrieval and erasure | At least 30 days to retrieve, then certified erasure | Art. 25(2)(g), (h) |
| Jurisdiction | Published infrastructure location and government-access measures | Art. 28 |
| Rehearsal right | A yearly test export at no charge | Our recommendation |
When SaaS is still right, and when ownership changes the math
SaaS remains sensible for many teams: less to operate, faster to start. The Data Act lowers the cost of leaving but does not give you a working replacement; the source vendor owes export, not a rebuilt setup 2. Sender reputation and tuned models may not travel with the data, so budget for warm-up and retraining.
Customer-owned deployments change the exit equation. With PrivyCDP, Meiro or another self-hosted or private-cloud option, data and configuration already sit in your environment, so exit becomes a license and migration decision rather than an export request, while you take on operations. The self-hosted CDP guide and lock-in clauses guide compare the options, and the RFP template includes switching requirements.
If you are weighing a move from SaaS to a customer-owned deployment before your next renewal, an exit-readiness review scopes the export, the target environment and the license. More playbooks are in the regulation hub.
Frequently asked questions
When do EU Data Act switching charges end?
Does the Data Act apply to SaaS tools like a CDP or an ESP?
Yes. The Commission's FAQ says data processing services cover IaaS, PaaS and SaaS, and Chapter VI does not distinguish between types of SaaS. SaaS providers must offer open interfaces and machine-readable export; the functional-equivalence duty applies only to infrastructure services 2.
How long does switching take under the Data Act?
Up to two months' notice, then a transition of at most 30 calendar days, then at least 30 days to retrieve data. If the provider shows 30 days is technically unfeasible, it can propose up to seven months; you may extend the transition once (Article 25) 1.
Are egress fees free after 12 January 2027?
Not entirely. Charges for switching, including egress, end. But for services run in parallel, such as a multi-cloud setup, providers may still pass on egress costs up to the cost incurred (Article 34(2)) 12. Standard subscription fees and any proportionate early termination penalty also remain payable. Negotiate rates for parallel use.
Can my SaaS vendor still charge an early termination fee?
Does the Data Act apply to contracts signed before September 2025?
Sources
- Regulation (EU) 2023/2854 (Data Act), EUR-Lex Open source
- European Commission, Data Act FAQ, version 1.4 of 22 January 2026 (Q52 to Q58b): and Open source · Additional source
- Greenberg Traurig (commentary), EU Digital Omnibus package proposes amendments to the Data Act, July 2026 Open source
- European Commission, draft Recommendation on non-binding model contractual terms and standard contractual clauses for cloud computing contracts Open source
- European Commission, Data Act explained (switching) Open source
Put this evaluation into practice.
Request an architecture reviewThis article is general information, not legal advice.
Further reading
- Customer data regulation guides
- Cloud Exit Strategy Template
- CDP for Banks: On-Prem & VPC
- Deployment readiness checklist
- CDP RFP Template: 50 Requirements
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