The EU Data Act: What It Means for Your Business
The EU Data Act, which entered into application in September 2025, represents one of the most significant pieces of digital legislation since GDPR. It fundamentally reshapes how businesses handle data generated by connected products and related services.
Key Provisions
Data Access Rights
Users of connected products (from IoT devices to industrial machinery) now have the right to access data generated by those products. Manufacturers must make this data readily available, in a machine-readable format, at no additional cost.
Cloud Switching
The Data Act introduces mandatory measures to facilitate switching between cloud service providers:
- Providers must remove barriers to switching
- Transition periods with parallel running must be supported
- Switching charges will be eliminated by 2027
- Functional equivalence must be maintained during migration
Data Sharing Obligations
In certain circumstances, data holders must share data with third parties upon the user's request. This creates new obligations for B2B data sharing and opens markets that were previously locked by data silos.
Impact on SaaS Providers
If you build or sell SaaS products in the EU, the Data Act affects you in several ways:
- Portability: Your product must support data export in standard, machine-readable formats
- Interoperability: APIs and data formats should follow open standards where possible
- Transparency: Users must be informed about what data is generated and how it's used
- Contract terms: Unfair contractual terms regarding data access can be challenged
Opportunity for EU Alternatives
The Data Act's emphasis on portability and interoperability levels the playing field. EU-based providers that embrace open standards and transparent data practices are well-positioned to attract businesses seeking Data Act compliance.