IP/IT FLASH NEWS - EU DATA ACT

The Data Act came into force on 12 September 2025.

This European regulation mainly contains provisions aimed at encouraging the circulation of data (personal or otherwise) generated by Internet of Things (IoT) devices. Another section of the Regulation introduces new obligations for cloud service providers (SaaS, PaaS and IaaS).

The Data Act aims to simplify and secure the transition to a data processing service provider or on-site ICT infrastructure.
From that date onwards, contracts concluded by providers of these services (including terms and conditions) must comply with this text.

Under the Data Act, cloud service providers (including SaaS software publishers) must remove all 'pre-commercial, commercial, technical, contractual and organisational barriers that hinder customers' from their contracts, in order to facilitate termination, change of provider or data transfer.

The customer's rights and the provider's obligations in the event of termination of the contract must be clearly stated in writing.
Specific clauses must detail the steps the provider will take to organise and facilitate the customer's exit strategy, ensure the security and integrity of their data, and guarantee its transfer to a new provider or internally within the defined notice period.

The Data Act also provides for the phasing out of supplier switching fees.

From 12 January 2027 onwards, suppliers will no longer be permitted to charge their customers for the switching process (transitional provisions are planned until this date).

Penalties: Each Member State must establish a system of 'effective, proportionate and dissuasive' penalties for non-compliance and designate a national supervisory authority.

Note: the SREN law of 21 May 2024 in France anticipated this issue and already provides provisions governing the costs of switching providers and data transfers. ARCEP has been designated as the supervisory authority responsible for enforcing the SREN law provisions.

Questions about the Data Act and its implications? Our IP/IT lawyers are at your disposal.