Leaving a cloud provider is now a legal right in the EU. Making that exit work is still the bank’s job. EU Data Act cloud switching rules have applied since 12 September 2025, and covered switching charges end on 12 January 2027.

Key Takeaways

• From 12 January 2027, providers may not charge for covered switching, including switching-related data egress.
• A switch normally completes within 30 days of notice. A bank-grade migration needs far longer preparation.
• Amazon, Microsoft and Google held 70% of Europe’s cloud infrastructure market in July 2025, so exit plans matter.

Who the EU Data Act Cloud Switching Rules Cover

Chapter VI applies to qualifying cloud and edge services, from infrastructure to software, provided to customers in the EU. The provider’s location does not matter.

Two exceptions apply. Services custom-built for one customer and not offered at broad commercial scale escape specific duties, including the fee ban. Limited-period, non-production test versions are excluded entirely.

The Switching Clock

1. Notice: up to two months.
2. Transition: normally up to 30 calendar days.
3. Technical exception: up to seven months, if the provider justifies why 30 days is unfeasible.
4. Data retrieval: at least 30 days after the transition.

The customer also has a separate, one-time right to extend the transition. These deadlines govern the contract, not the project: preparation and testing need their own schedule.

What the 2027 Fee Ban Does Not Cover

Until 12 January 2027, switching charges cannot exceed the provider’s direct costs. After that date, these costs remain:

• ordinary service fees while the contract runs;
• early termination penalties, which are not automatically abolished;
• egress for ongoing multi-cloud use, chargeable at cost;
• optional services beyond mandatory switching duties;
• the bank’s own migration work.

The ban removes a toll on leaving. It does not pay for the engineering.

Why Lock-in Outlasts the Fee Ban

Cloud vendor lock-in persists through proprietary databases, identity services, integrations and licensing. In July 2025, Amazon, Microsoft and Google held 70% of Europe’s cloud infrastructure market; European providers held about 15%. Globally, the three held 28%, 20% and 15% of a $143 billion market in Q2 2026.

Infrastructure providers must support functional equivalence; other providers must offer free open interfaces. Neither guarantees identical performance.

Take a payment application moving clouds. Transaction records may export cleanly while the destination lacks compatible key management, scheme integrations and recovery procedures. That gap, not the export, decides whether the exit works.

What Banks Should Do Under DORA

The Digital Operational Resilience Act (DORA) already requires tested exit plans for information and communication technology (ICT) services supporting critical or important functions. That covers every such provider, not only the 19 critical ICT third-party providers EU supervisors designated in November 2025. Before January 2027:

1. Map dependencies and contracting entities.
2. Check contracts for assistance, export scope, timelines and erasure.
3. Restore representative data at the destination and validate the business process.
4. Budget the full exit: engineering, licences and parallel running.

What to Watch Next

The Digital Omnibus proposal would ease switching duties for some older contracts. It is still pending, so its exemptions are not law.

On 25 June 2026, the Commission took the preliminary view that AWS and Microsoft Azure should be designated cloud gatekeepers under the Digital Markets Act. A final decision is expected in November 2026.

ASEE’s View

Cloud exit for a regulated workload is an operational migration, not a data export. ASEE supports 1,200+ clients in 55+ countries and processes over 3 billion transactions a year. Our own cloud services fall under the same Chapter VI rules as any provider serving EU customers.

FAQ

Does the Data Act apply to US cloud providers?

Yes. It applies to any provider serving customers in the EU, wherever it is established.

Are all cloud egress fees abolished?

No. The ban covers switching-related egress. Egress for ongoing multi-cloud use can still be charged at cost.

Do existing cloud contracts need to comply?

Yes. The switching rules generally apply to existing and new contracts from 12 September 2025, subject to the Article 31 exceptions.

Sources

1. EU Data Act, Regulation (EU) 2023/2854 — EUR-Lex.
2. European Cloud Providers’ Local Market Share Now Holds Steady at 15% — Synergy Research Group, July 2025.
3. Q2 Cloud Market Passes $143 Billion — Synergy Research Group, July 2026.
4. Digital Operational Resilience Act, Regulation (EU) 2022/2554 — EUR-Lex.
5. ESAs designate critical ICT third-party providers under DORA — European Banking Authority, 18 November 2025.
6. Digital Omnibus procedure 2025/0360(COD) — European Parliament Legislative Observatory.
7. Commission’s preliminary DMA position on AWS and Azure — European Commission, 25 June 2026.