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The EU Just Made Cloud Switching Fees Illegal, Starting 2027

Tags: Cloud, EU Data Act, Contracts

A data centre corridor lined with server racks

From 12 January 2027, the EU Data Act prohibits switching charges for moving to another provider or to on-premises infrastructure, including data-egress charges directly related to switching. Other data-transfer charges may still apply.

Cloud providers whose contracts or pricing models rely on switching fees should review them ahead of the deadline. Dalio Partners assesses the commercial impact on pricing and market positioning, coordinating with specialist legal counsel where contractual changes are required.

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