EU Data Act: Gamechanger For SaaS Contracts

The EU Data Act brings sweeping changes for SaaS providers, introducing new rights for customers to switch providers and mandating clear, written contractual terms around data portability and migration. From 12 September 2025, SaaS providers must remove contractual and technical barriers to switching, allow customers to terminate contracts with a maximum two-month notice, and ensure secure, timely data transfers. These requirements apply to both new and existing contracts, including those with fixed terms, and have extraterritorial reach, affecting non-EU providers serving EU customers. SaaS providers should urgently review and update their contracts, switching procedures, and technical capabilities to ensure compliance and avoid potential penalties.