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EU Rules for Builders

EU Data Act in Practice: Switching Cloud Providers Gets Free in January 2027, and Your Devices' Data Becomes Yours

Written by the Yorozuya IT editorial team, based in Japan. Menus, apps, and rules change, so check the date.

Short answer

Two parts of the EU Data Act (Regulation 2023/2854) affect ordinary users and small teams far more than most EU rules: your rights to data from connected devices, and the end of switching charges for cloud services. One has just started, and the other arrives in a few weeks.

The timeline

Timeline of the Data Act from entry into force in 2024 to the end of cloud switching charges in January 2027, with what it means for three groups

If you buy or use cloud services

The Act makes it contractually and technically easier to leave a provider. Providers must remove barriers to switching, support exporting your data and digital assets, and offer an exit process. From 12 September 2025 until 12 January 2027, any charge for switching has to be limited to the provider's direct costs. After 12 January 2027, switching charges are banned. Summaries note an exception for customers who run services in parallel, which can still incur ongoing data-transfer costs.

What to do:

  1. Read your contract's exit terms. How long is the notice, and what formats can you export?
  2. Ask your provider how it implements the Data Act: switching process, timelines, and charges.
  3. Write an exit plan. Where does your data live? How would you move it, and how long would it take?
  4. Avoid deep lock-in. Prefer open formats and standard APIs where you can.

If you own connected devices

Since September 2025, users of connected products have a right to access the data those products generate, and to ask for it to be shared with a third party. From September 2026, newly placed products must make it easy to get at that data. Look for an export option or a request process in the manufacturer's documentation, and for what data and formats are offered. Be careful about who you share it with: the Act gives you the choice, and you carry the responsibility.

The design duty is now live for new products. Make it part of your release criteria:

  1. List the data your product generates, in what format and how often.
  2. Provide direct access where relevant (an interface, export, or dashboard) and clear pre-contract information.
  3. Plan sharing with third parties at the user's request, and protect trade secrets and security.
  4. Document it. Keep evidence that the feature exists and works.

Why it matters for small teams

Lock-in is expensive for small companies. The January 2027 date removes a direct cost from changing provider and gives you leverage in renewals. And the data-access rights mean your device data can power your own tools, if you ask for it.

Sources

Overview as of November 5, 2026. This is not legal advice.

FAQ

Does it apply to cloud providers outside the EU?

The Act covers providers offering data processing services to customers in the EU, wherever the provider is based. Check how your provider handles it in its contract and documentation.

Does it cover my smart speaker or thermostat?

Connected products that generate data about their use or environment can be in scope. Many consumer devices are, but details of scope and which data counts depend on the product.

What about egress fees for ordinary multi-cloud use?

Summaries note an exception: ongoing in-parallel use of services can still incur data-transfer costs. The ban targets charges for switching.

Is this legal advice?

No. It is a plain-language overview of dates and duties drawn from law-firm and Commission summaries.

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