Data Strategy Briefing — EU Data Act Council General Approach

The Council of the European Union agreed its general approach on the Data Act on 28 November 2022. The position refines cloud and edge switching obligations, clarifies business-to-government (B2G) data request safeguards, and strengthens protections for SMEs. It sets the Council's baseline for trilogue negotiations, giving organizations early signals to prepare contracts, architectures, and compliance plans.

What changed

• Switching requirements for cloud and edge services were staged with transitional periods and limits on switching charges.
• B2G data request conditions were tightened, emphasizing necessity, proportionality, compensation, and confidentiality.
• SME protections were reinforced, including exemptions from certain obligations and limits on unfair contractual terms.

Why it matters

• Cloud customers should begin aligning contract language and technical plans with the Council's switching expectations to reduce lock-in and enable portability.
• Data holders must anticipate B2G access requests, building processes for lawful disclosure, auditing, and transparency to customers.
• Vendors serving EU SMEs need to catalog where exemptions apply and prepare evidence that contractual terms remain fair.

Action checklist

• Review current cloud contracts for switching fees, timelines, and data export formats; draft playbooks to meet Council timelines once finalized.
• Design data governance workflows for handling emergency or public-interest B2G requests with documentation and challenge mechanisms.
• Identify SME customers and ensure product terms and data access conditions reflect the Council's fairness and exemption criteria.

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