ACM issues guidance on cloud service switching under Data Act

The Netherlands Authority for Consumers and Markets (ACM) has published a new guidance document regarding the Data Act, specifically focused on cloud services. The initiative aims to ensure that switching between cloud providers is fast, easy, and cost-effective, thereby reducing customer dependency on major providers.

Currently, the cloud market is highly concentrated, with the three largest providers controlling 75% of the market. High switching costs, closed systems, and complex contracts often prevent users from moving to competitors. The ACM guidance translates the obligations of the Data Act into concrete tools to help users understand their rights, such as the ability to use multiple services in parallel and the right to switch providers without undue burden.

ACM board member Manon Leijten stated that easier switching will stimulate competition on price and quality, benefiting users and allowing smaller, newer providers to compete more effectively based on quality rather than scale.