The New Switching Regime
The EU Data Act’s Switching Regime requires data processing services providers such as SaaS, PaaS, IaaS and edge service providers to remove barriers, ensure interoperability, and eliminate switching fees, enabling customers to migrate data and services easily and fairly.
The Switching Regime redefines the relationship between customers and service providers, prioritising flexibility, transparency, and fairness.
The EU Data Act, part of the broader EU Data Strategy, represents a significant shift in how data is accessed, shared, and managed across the European digital economy.
While much attention has been given to Access Rights under Chapter II, Chapter VI, the Switching Regime is equally transformative. It became applicable on 12 September 2025 and will have profound implications for cloud platforms, edge computing providers, and any business offering data processing services.
CHAPTER VI: The Switching Regime
The core principals of Chapter VI are to ensure EU customers of cloud and edge services can switch easily from one provider to the next. Current barriers, including high egress charges, lengthy procedures and lack of interoperability, create risk of data and application loss. The EU Data Act will mean switching becomes fast and free.
Ends Cloud Lock-In
The Act ends cloud lock-in and mandates easy switching between providers, breaking long-standing vendor lock-in.
Drives Technical Interoperability
It pushes providers to adopt standardised interfaces and formats to enable seamless data and application migration.
Cuts Switching Costs
The EU Data Act ends switching costs and phases out fees like data egress charges, reshaping cloud pricing dynamics. Proportionate early termination charges, however, may remain admissible.
Forces Contract Reform
The Act requires providers to offer clear switching terms, migration support, and data portability, processing data closer to its source for speed and efficiency.
Chapter VI introduces a legal framework that guarantees customers the ability to switch providers or migrate to their own infrastructure quickly, easily, and without prohibitive switching costs.
This is not just a compliance obligation; it may be a strategic opportunity. Providers who embrace these requirements early can position themselves as leaders in transparency and customer-centricity, while those who delay risk legal exposure, reputational harm, and loss of market share.
Chapter VI comprises six pillars:
Art. 23 – Obligation to remove technical, contractual, and organisational obstacles to switching.
Art. 25 – Establishes contractual terms that make switching practical.
Art. 26 – Imposes information obligations on providers.
Art. 28 – Adds transparency obligations for providers.
Art. 29 – Mandates gradual withdrawal of switching charges.
Art. 30 – Regulates technical aspects of switching.
Together, these provisions rebalance power between customers and providers by setting minimum standards for cloud contracts.
What does Chapter VI cover?
The Switching Regime applies to data processing services, a term that encompasses a wide range of offerings:
Infrastructure as a Service (IaaS)
Virtualised computing resources delivered over the internet
Platform as a Service (PaaS)
Platforms enabling developers to build and deploy applications
Software as a Service (SaaS)
Software applications delivered online
Edge Computing Services
Processing data closer to its source for speed and efficiency
Providers of data processing services are subject to multiple obligations as outlined in Chapter VI of the Data Act. Whether a services qualifies as a 'data processing service' is a case-by-case decision and will depend on its specific functions and properties. For businesses who are unsure of whether they fall under the umbrella definition of 'data processing services' should satisfy themselves of their obligations by seeking legal advice.
The Act has extraterritorial reach. Non-EU providers serving EU customers must comply and may need to appoint an EU representative.
This ensures that European businesses benefit from consistent standards, regardless of where their service provider is based.
The Legal Architecture of Switching
Chapter VI introduces a series of obligations aimed at removing barriers to switching. These obligations are not just technical; they reshape contractual relationships and operational practices. Providers must ensure that customers can terminate agreements, migrate data, and transition services without undue obstacles. This includes eliminating proprietary formats, restrictive licensing, and opaque migration processes.
Contracts will need to be rewritten to reflect these rights. They must clearly articulate termination procedures, migration timelines, and post-switch data access. Transparency is no longer optional; it is a statutory requirement.
Timeframes are also regulated. Customers must be able to initiate switching with up to two months’ notice, and providers must allow a 30-day transitional period for migration, extendable if technically necessary. After the transition, customers are entitled to a minimum 30-day retrieval period to access any remaining data.
Cost and Fee Restrictions
One of the most impactful provisions relates to fees. Until January 2027, providers may charge only for reasonable direct costs associated with switching.
After that date, all switching fees must be eliminated. This means businesses should plan now for a future where migration is cost-free, which may be a significant cultural and operational shift for many providers.
Technical and Interoperability Standards
The Act mandates interoperability as a cornerstone of switching. Providers must adopt standardised APIs, machine-readable formats, and open interfaces to facilitate seamless migration. This is not just a technical challenge; it requires alignment across engineering, legal, and commercial teams to ensure compliance without compromising security or performance.
Behavioural Obligations
Beyond technical and contractual requirements, Chapter VI imposes a duty of good faith and fair dealing. Providers must avoid tactics that delay or complicate migration. This principle underscores the Act’s broader goal: to create a fair, competitive environment where customers can exercise choice without friction.
What's next for businesses?
Chapter VI of the EU Data Act is more than a regulatory hurdle; it’s a chance to reshape your business strategy. Success will depend on two parallel tracks: leveraging strategic opportunities and ensuring legal readiness.
Strategic Opportunities and Competitive Edge
The Switching Regime can act as a catalyst for innovation. Providers who invest in interoperability and customer-centric design will not only meet legal requirements but also strengthen their market position. Early adopters can differentiate themselves by offering transparent, user-friendly switching processes that customers value.
Easier switching creates a dynamic market where customers are more willing to explore alternatives. Providers who deliver seamless onboarding and migration support will gain a clear advantage in customer acquisition. The Act’s extraterritorial scope also opens doors for global reach, enabling businesses to expand into new markets under a harmonised regulatory framework.
Finally, the ability to switch providers without barriers enhances operational flexibility. Businesses can optimise cost, performance, compliance, and resilience by moving between providers as needed, turning regulatory compliance into a tool for strategic agility.
Legal Imperatives: Preparing for Compliance
To unlock these benefits, legal teams must act now. Begin by auditing existing contracts to identify gaps against Chapter VI obligations. Redraft clauses to reflect switching rights, termination procedures, and interoperability requirements. Where personal data is involved, ensure full alignment with GDPR, including lawful processing bases and transparency obligations.
Collaboration with technical teams is essential to guarantee interoperability readiness: standardised APIs, machine-readable formats, and open interfaces must be in place. Finally, plan ahead for the elimination of switching fees after January 2027, as this will require both contractual and operational adjustments.
Audit Contracts
Audit existing contracts for compliance gaps.
Redraft Clauses
Redraft clauses to reflect switching rights and obligations.
Collaborate with tech teams
Collaborate with technical teams to ensure interoperability readiness
Zero Switching Fees
Plan for zero switching fees post-2027.