Data Act Switching Charges and Egress Fees: The Reduced-Cost Period and the Ban from 12 January 2027

The rule sits in Regulation (EU) 2023/2854, the EU Data Act, which counts data egress charges as one kind of switching charge (Art. 2(36)).

The Regulation has been in force since 11 January 2024, and the reduced-charge window of Article 29(2) opened on that same day. Chapter VI, "Switching between data processing services", has applied since 12 September 2025 (Art. 50).

One kind of egress stays chargeable after the ban: egress for in-parallel use of two data processing services, passed on at cost (Art. 34(2)).

The table sums up the charge rules in eight points.

What Counts as a Switching Charge under Article 29?

A switching charge is any charge, other than standard service fees or early termination penalties, that a provider of data processing services imposes on a customer for the actions the Data Act mandates for switching to another provider or to on-premises information and communication technology (ICT) infrastructure, data egress charges included (Art. 2(36) Regulation (EU) 2023/2854). Article 29, headed "Gradual withdrawal of switching charges", sits in Chapter VI, the chapter on cloud switching under the Data Act. The table sorts exit charges by whether Article 29 withdraws them.

Data Egress Charges Are Part of Switching Charges

Data egress charges are data transfer fees charged to customers for extracting their data through the network from the ICT infrastructure of a provider of data processing services to the system of a different provider or to on-premises ICT infrastructure (Art. 2(35)). Article 2(36) names them inside switching charges, so the Article 29 dates apply to egress for a switch. Recital 88 gives two examples of switching charges: costs related to the transit of data (data egress charges) and costs of specific support actions during the switching process. Unnecessarily high egress charges, the recital adds, "inhibit customers from switching" and can "cause lock-in effects".

Standard Service Fees Are Not Switching Charges

Standard service fees for the data processing service itself are not switching charges: they are not subject to withdrawal and remain applicable until the contract for the service ceases to apply (recital 89). Article 2(36) also excludes early termination penalties by name, so Article 29 does not withdraw them; whether a penalty is proportionate is a contract question.

Which Providers and Services Article 29 Binds

Article 29 binds every provider of data processing services serving customers in the Union, wherever it is established (Art. 1(3)(f)), across infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) (recital 81). Article 24 limits the duty to the source provider's own services.

Custom-built services not offered at broad commercial scale are exempt from Article 29 (Art. 31(1)), and non-production test versions for a limited period from all of Chapter VI (Art. 31(2)). The conditions are explained under cloud services exempt from Data Act switching rules.

How Does the Reduced-Cost Period Work until 12 January 2027?

From 11 January 2024 to 12 January 2027, a provider may impose reduced switching charges for the switching process, and those charges may not exceed the costs it incurs that are directly linked to that switch (Art. 29(2) and 29(3) Regulation (EU) 2023/2854). The window opened at entry into force, before Chapter VI applied; the Commission's frequently asked questions (FAQ) v1.4 of 22 January 2026 reads it as a duty to reduce charges, egress included, from that day (Q54).

The Direct-Cost Cap of Article 29(3)

The cap is cost-based, not a percentage: a reduced switching charge may cover only the provider's own costs directly linked to the switching process concerned (Art. 29(3)). It is set per switch, not as a general exit price, and egress for the switch shares it (Art. 2(36)).

The Commission's draft standard contractual clauses (SCCs) count the cost of automated switching or testing tools the provider uses to meet its obligations as switching charges (Annex VI), in a draft Recommendation approved by Communication C(2025) 7750 of 19 November 2025, formal adoption pending as of 5 November 2026.

Costs a Provider May Not Pass On

A customer should not bear the costs of tasks the source provider outsources to third parties during the switching process, unless those costs cover additional support the customer requested beyond the provider's switching obligations (recital 89). Additional services of that kind "can be performed and charged for by the provider when they are performed at the customer's request and the customer agrees to the price of those services in advance" (recital 89). A reduced switching charge must still stay within the Article 29(3) cap.

The French EUR 0 Data-Transfer Fee Cap

As of 5 November 2026, French law sets the maximum fee for data transfers on switching at EUR 0: an arrêté (order) of 17 November 2025, published in the French Official Journal (JORF n° 0281 of 30 November 2025, texte n° 12), made under article 27 V of loi n° 2024-449 of 21 May 2024 (SREN) on a proposal by the Autorité de régulation des communications électroniques, des postes et de la distribution de la presse (Arcep). The arrêté applies until 12 January 2027, when the Article 29(1) ban takes over across the Union. The wider national picture is covered under the Data Act in France.

What Changes on 12 January 2027?

From 12 January 2027, providers of data processing services may not impose any switching charges, data egress charges included, on the customer for the switching process (Art. 29(1) Regulation (EU) 2023/2854). The table compares the regimes by period.

The Commission FAQ reading in Q54 is not binding.

No Charges for the Switching Process

The ban covers every action the Data Act mandates for the switch, so extracting data for the move, support actions during the switching process and egress for the switch carry no charge from 12 January 2027 (Art. 29(1), Art. 2(36)). The Commission's Data Act explained page (last updated 15 December 2025) says the same. The date sits in Article 29(1) itself, not in Article 50.

Which Charges Remain after the Ban

Three kinds of charge survive 12 January 2027: standard service fees until the contract ends, early termination penalties outside the definition of switching charges, and data egress charges for in-parallel use passed on at cost.

The contract must specify the switching charges that may be imposed in accordance with Article 29 (Art. 25(2)(i)), which from 12 January 2027 means none for the switching process. Recital 89 allows proportionate early termination penalties in fixed-duration contracts, in accordance with Union or national law; see cloud contract terms under Article 25.

When Can Egress Still Be Charged for In-Parallel Use?

Providers may still impose data egress charges where a customer uses one data processing service in parallel with another, but only to pass on the egress costs they incur, without exceeding them, and the Commission FAQ v1.4 (Q54) reads this as holding after 12 January 2027 as well (Art. 34(2) Regulation (EU) 2023/2854). Article 34, headed "Interoperability for the purposes of in-parallel use of data processing services", sits in Chapter VIII, outside the switching chapter.

Why In-Parallel Egress Is Treated Differently

In-parallel use means the customer keeps its contract and runs services of different providers side by side for complementary functionalities, so egress can be an ongoing activity rather than the one-off egress of a switch (recital 99). Recital 99 names multi-cloud strategies as one reason for the rule. A margin on in-parallel egress stays outside Article 34(2).

Which Switching Duties Article 34(1) Extends to In-Parallel Use

Article 34(1) applies Article 23, Article 24, Article 25(2), points (a)(ii), (a)(iv), (e) and (f), and Article 30(2) to (5) mutatis mutandis to in-parallel use. In plain words, providers remove obstacles, answer for their own services only, keep continuity and security, specify the exportable data and trade-secret exemptions, and offer open interfaces and standards compatibility. The competent authority that enforces Articles 23 to 31, 34 and 35 must have experience in the field of data and electronic communications services (Art. 37(4)(b)). Article 30 is explained under functional equivalence and technical switching duties.

What Must Providers Disclose about Charges under Article 29(4) to (6)?

Article 29 Regulation (EU) 2023/2854 adds three disclosure duties to the price rules: fee information before the contract, a warning where switching is highly complex or costly, and publication of both on the provider's website or in another easily accessible way. The warning applies where relevant and the publication where applicable.

Fee Information before the Contract

Before entering into a contract, the provider gives the prospective customer clear information on the standard service fees and early termination penalties that might be imposed, and on the reduced switching charges that might be imposed until 12 January 2027 (Art. 29(4)). From that date only the fees and penalties remain to be disclosed.

Warning of Highly Complex or Costly Switching

Where relevant, the provider informs the customer about data processing services whose switching is highly complex or costly, or for which switching is impossible without significant interference in the data, digital assets or service architecture (Art. 29(5)). This is an information duty only: it does not lift the Article 29(3) cap or the Article 29(1) ban.

Publication on a Dedicated Website Section

Where applicable, the provider makes the information under Article 29(4) and 29(5) publicly available to customers through a dedicated section of its website or in any other easily accessible way (Art. 29(6)). Publication lets a prospective customer compare providers before signing.

Who Monitors the Withdrawal of Switching Charges?

Each Member State's competent authority monitors the withdrawal of switching charges under Article 37(5)(i) Regulation (EU) 2023/2854, and the Commission may add an EU monitoring mechanism by delegated act under Article 29(7). The power to adopt it has been conferred for an indeterminate period from 11 January 2024 (Art. 45(2)), and as of 5 November 2026 no such delegated act has been adopted. The European Data Innovation Board (EDIB) advises the Commission on its preparation (Art. 42(c)(iii)).

By 12 September 2028, the Commission's evaluation of the Regulation assesses the diminution of charges imposed for the switching process, in line with Article 29 (Art. 49(1)(i)). The authorities and complaint routes are set out under Data Act enforcement.

How to Prepare Pricing, Contracts and Invoices for the Charge Ban

A provider prepares for 12 January 2027 in six steps, and a customer can use the same steps to check its own contracts:

1. Classify every exit-related line item as switching charge, standard service fee or early termination penalty.
2. Cost each switching charge against the Article 29(3) cap until 12 January 2027.
3. Remove switching and egress charges for the switching process from 12 January 2027.
4. Keep in-parallel egress at cost and document the cost basis.
5. Align the Article 25(2)(i) charge clause, check periods with the Data Act cloud switching timeline calculator and compare the Data Act standard contractual clauses for cloud contracts.
6. Publish the Article 29(4) and 29(5) information where applicable.

The Article 25 periods stay unchanged: notice of at most two months, a transitional period of 30 calendar days (up to seven months where technically unfeasible) and data retrieval of at least 30 calendar days.

The Data Act sets no EU fine amount, Article 29 included; Member States lay down the penalties (Art. 40(1)), as explained under Data Act penalties and fines.

The other duties of a cloud provider are set out in the Data Act compliance checklist.

Where the Charge Rules Sit in Chapter VI

Article 29 is the price rule of the switching chapter: the contract terms of Article 25, the technical duties of Article 30 and the exemptions of Article 31 decide how a switch runs, and Article 29 decides what it may cost. Four neighbouring rules frame it:

• Contract terms and periods: Article 25 contract terms.
• Interoperability for in-parallel use: interoperability under the Data Act.
• Definitions of Art. 2(35) and 2(36): Data Act definitions.
• In-parallel use beyond switching: egress at cost under Article 34(2).

Chapter VI has applied since 12 September 2025 to existing and new contracts (Art. 50).

The pending Digital Omnibus proposal COM(2025) 837 would not amend Article 29. It would disapply the rest of Chapter VI, and Article 34, for non-IaaS services that are custom-made or come from small and medium-sized enterprise (SME) or small mid-cap providers under contracts concluded on or before 12 September 2025, and void terms contrary to Article 29(1) to (3). Status: proposal of 19 November 2025, Council mandate agreed by the Permanent Representatives Committee (Coreper) on 21 October 2026 (ST 14756/26 of 22 October 2026), European Parliament committee stage ("Awaiting committee decision", no committee vote) as of 5 November 2026; not law. See Data Act amendments.

Questions about Switching Charges and Egress Fees

Each answer holds as of 5 November 2026.

Are all egress fees banned from 12 January 2027?

No: from 12 January 2027 egress for the switching process carries no charge (Art. 29(1)), but egress for in-parallel use may still be passed on at cost, without exceeding the costs incurred (Art. 34(2); Commission FAQ v1.4 Q54).

Can a provider charge for egress during the reduced-cost period?

Yes, until 12 January 2027, but only up to the costs directly linked to the switching process concerned, because egress for the switch is a switching charge (Art. 29(2) and 29(3), Art. 2(36)).

Does the ban cover contracts signed before 12 September 2025?

Yes: Chapter VI has applied since 12 September 2025 to existing and new contracts, with no transitional rule in Article 50, so the 12 January 2027 ban reaches older contracts too (Art. 29(1)). Every date is in the Data Act timeline.

Does a provider have to publish its switching charges?

Where applicable, yes: the pre-contract fee information and, where relevant, the warning on highly complex or costly switching are made publicly available in a dedicated website section or in another easily accessible way (Art. 29(6)).

Does the pending amendment proposal change the 2027 date?

No: as of 5 November 2026 the pending proposal COM(2025) 837 would not amend Article 29 or Article 50, so the dates of 11 January 2024 and 12 January 2027 stand.