European UnionData Act, Ban on Switching Charges from 12 January 2027 (Article 29(1))
Regulation (EU) 2023/2854, Art. 29(1)
A switching and interoperability rule binding private bodies.
- Private right of action
- No
As of .
What it requires
- From , if you provide a data processing service, do not impose any switching charges on the customer for the switching process (Art. 29(1)).
- Before concluding a contract for a service that Article 31 takes outside part of this Chapter, tell the prospective customer which obligations of the Chapter do not apply (Art. 31(3)).
These lines are LexLint's reading of the law's text, as of .
Who enforces it
Enforcement body
The competent authorities that each Member State designates to be responsible for the application and enforcement of the Regulation (Article 37(1)), which for Articles 23 to 31, 34 and 35 must have experience in the field of data and electronic communications services (Article 37(4), point (b)); an entity falls under the competence of the Member State where it is established (Article 37(10)).
Settledness
- As of
- Open questions
- Will the Digital Omnibus (procedure 2025/0360(COD)) be adopted with the Council mandate's rule that a contractual provision contrary to Article 29(1), (2) or (3) in a relieved contract is null and void?
What it reaches
Obligation class
Prohibition
Applicability criteria
- As of
- Combinator
- All of
- Criteria
- the data processing service is not one of which the majority of main features has been custom-built to accommodate the specific needs of an individual customer, or all of whose components have been developed for the purposes of an individual customer, and which is not offered at broad commercial scale via the service catalogue of the provider (Article 31(1) lifts Article 29 for such a service)
Also on the record
EEA status
- Status
- Pending
- Source link
- https://www.efta.int/eea-lex/32023r2854
What this law does
Article 29(1) of Regulation (EU) 2023/2854 provides that from providers of data processing services shall not impose any switching charges on the customer for the switching process.
Article 31(1) excludes from Article 29 a data processing service of which the majority of main features has been custom-built for an individual customer, or whose components were all developed for an individual customer, where it is not offered at broad commercial scale via the provider's service catalogue. Article 31(2) excludes the obligations of Chapter VI for a data processing service provided as a non-production version for testing and evaluation purposes and for a limited period of time.
Article 37(5), point (i), requires the tasks and powers of each Member State's competent authorities to include ensuring that switching charges are withdrawn in accordance with Article 29. Article 40(1) leaves the rules on penalties for infringements of the Regulation to the Member States, which must make them effective, proportionate and dissuasive.
The Permanent Representatives Committee agreed the Council's mandate for negotiations with the European Parliament on the Digital Omnibus on . The Digital Omnibus text in that mandate would treat any contractual provision in a relieved contract that is contrary to Article 29(1), (2) or (3) as null and void.
When LexLint raises it
When your app profile says your app provides cloud services.