The Netherlands Authority for Consumers and Markets (ACM) has published comprehensive guidance on the European Union’s Data Act, establishing clear rules to ensure that switching between cloud providers is fast, straightforward, and entirely free of charge. This regulatory initiative addresses significant structural concerns in the digital market where the three largest cloud providers control seventy-five percent of the sector. High switching costs, proprietary systems, and complex contracts have historically locked customers into single ecosystems, leaving them vulnerable to unilateral price changes and restrictive terms.
The Data Act, which has been in force for over a year, shifts this dynamic by empowering individuals, businesses, and government organizations with greater digital autonomy. The ACM’s guidance translates these European legal obligations into concrete, actionable tools for both users and providers. Central to the framework are two core principles: seamless switching and parallel use, which allows customers to combine services from different providers simultaneously and enable data exchange between them.
According to ACM Board Member Manon Leijten, lowering these barriers stimulates healthy market competition regarding price and quality. It also creates a more level playing field where smaller or newer providers can compete on merit rather than sheer economies of scale. While organizational switching costs will still exist for companies migrating complex infrastructures, the Data Act eliminates artificial provider-imposed financial penalties and uncertainties. Customers will know timelines and costs in advance and can expect full technical cooperation.
The guidelines structure the regulatory requirements into four distinct themes covering commercial transparency, technical interoperability, freedom from obstruction, and protection against unlawful international data transfers. Notably, as of January 12, 2027, providers will be completely prohibited from charging any fees for switching. Until that threshold, only direct costs related to technical support and data traffic are permitted.
The regulation applies across all EU Member States, including foreign providers servicing European clients. Domestic organizations encountering non-compliance can report infractions directly to the ACM, which coordinates closely with international regulatory counterparts to oversee enforcement and maintain a balanced European cloud market.