Cloud services
Under the European Data Act, customers of cloud services are afforded more rights, for example, the right to switch cloud services easily. This will benefit competition.
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More freedom of choice and increased competition as a result of the Data Act
With a cloud service, customers are able to store files and software, and use an IT service over the internet. They do not need to purchase the required software or equipment themselves. These files and software are thus stored in 'the cloud': an umbrella term for large, external servers that are connected to the internet. Businesses make extensive use of cloud services, for example, for their financial accounting, payment systems, customer relations, or inventory management.
At the moment, a small number of large cloud service providers make it difficult for customers to switch to other or smaller cloud service providers. In addition, it is currently not always possible for customers to use cloud services from different providers at the same time. As a result, many businesses that use cloud services are stuck with their current provider. That harms competition between cloud service providers, and, by extension, harms prices and product diversity.
The Data Act changes all of this. It must be easier for customers to switch providers, and to bring their data with them. Also, it must be possible to use different cloud services at the same time, and to have these services exchange data.
Easy switching to another cloud service
If a customer of a cloud service provider wishes to switch providers, that provider must see to it that the customer can easily do so. For example, customers must be able to bring all their data with them to a new provider. Also, the switching procedure cannot take too long, and the information about the procedure must be clear.
Providers of cloud services cannot create any obstacles to switching, for example, a technical obstacle that temporarily pauses the customer's business processes, such as the payment system or inventory management, or a technical obstacle that slows down the transfer of data to the new provider. Also, starting 12 January 2027, providers will no longer be allowed to charge switching fees. Until then, they can still do so, but only if the fees are directly related to the switching process itself.
When switching, customers must be given technical support by providers. Moreover, providers must ensure that the switch and data transfer take place in a secure manner.
Using different cloud services at the same time
Customers must be able to use cloud services from different providers at the same time easily, and it must be possible that those different services exchange data with each other, for example, exchanging data between ordering software and inventory management software. Providers must provide open interfaces such as API’s to help in making this possible, and cannot refuse to cooperate.
For example, providers must make it possible to link the software of other providers to their own software. Providers can charge fees for the exchange of data between different cloud services (egress fees), but only if those fees are directly related to the exchange.
By using different cloud services at the same time, customers are less dependent on any one provider. As a result, customers are able to look for the best provider for each cloud service, even for individual services.
Accessible information and clear contractual terms
Cloud service providers must inform their customers in advance in a clear and accessible manner, for example about the switching procedure. Such information must also be clearly stated in the contractual terms, as must the information about the maximum cancellation period and the length of the transitional period in the event of a switch. In addition, providers must keep an online register with up-to-date information about the data they have and how it is made available. Such a register is useful for customers that wish to switch, or for customers that wish to use cloud services at the same time.
Furthermore, it must be clear to customers under what jurisdiction the cloud service falls, and where the provider's servers are located. If this is a non-EU country, other digital-security and privacy standards may apply. It is important that customers are able to assess the potential risks of data storage outside the EU. It must also be clear what security measures providers have taken to protect customer data.
The European Commission has drawn up sample contracts. These can help providers and customers draw up clear and fair contractual terms.
Reports and our oversight
Customers of cloud service providers can file a report (in Dutch) with us, if, for example, they do not get clear information about the switching procedure or cancellation period, or if they cannot switch providers easily, or if they cannot use difference cloud services at the same time, and they and the provider are unable to reach a solution together.
Reports help us find out what businesses do not comply with the rules, and where we need to focus our efforts.
Additionally, parties always have the opportunity to go to court.