As Europe’s most significant data legislation since GDPR takes effect today, a telling divide is emerging in how major cloud providers are responding to the EU Data Act. While Amazon Web Services (AWS) maintains conservative “at-cost” data transfer pricing and Microsoft implemented similar measures only in late August, Google has gone nuclear—completely eliminating data transfer fees for multicloud workloads across the EU and UK.
This isn’t just about regulatory compliance. Google, holding roughly 10% of the European cloud market, is wielding the Data Act as a competitive weapon against market leaders AWS (32%) and Microsoft Azure (23%). But while tech giants scramble to adjust their pricing models, enterprise experts say the real opportunity lies in how businesses fundamentally rethink their data strategies.
“The EU Data Act is coming into effect at a crucial point in time,” says Tim Pfaelzer, senior vice president and general manager EMEA at Veeam. “Whilst many organisations have embraced hybrid environments for their flexibility, many have done so at the expense of data portability – making it harder to move, access, and secure data.”
The timing couldn’t be more critical. With the Act’s provisions now enforceable—carrying penalties up to €20 million or 4% of global annual turnover—businesses face an immediate choice: treat this as another compliance burden or leverage it as a transformation catalyst.
The Strategic Shift: From Data Silos to Competitive Advantage
The Data Act fundamentally reshapes how companies must perceive and manage data generated by connected products and cloud services. Users now have immediate legal rights to access and port data generated by their IoT devices, whilst cloud switching barriers are systematically dismantled.
But forward-thinking organisations are recognising this extends far beyond regulatory compliance. “This isn’t only about compliance, it’s about long-term competitiveness,” explains Gregory Hanson, group VP and head of EMEA North at Informatica. “Data access and sharing might sound administrative, but they are the lifeblood of a functioning AI economy.”
The economic potential is substantial. Research indicates the Data Act could generate an additional €270 billion in GDP, with companies investing in data-driven innovation seeing 5-10% faster growth. The legislation is already creating tangible business opportunities across industries—from enabling independent repair services to compete with manufacturers, to allowing farmers to consolidate data from multiple equipment vendors for optimised operations.
Also Read: One AI, Two Blueprints: A Guide to EU and US Data Laws
Building the Foundation for Tomorrow’s Data Economy
Pfaelzer emphasises that successful Data Act implementation requires fundamental infrastructure changes: “With new requirements not only on data portability, but also accessibility, the Act highlights why flexibility needs to be a key consideration, built into operations from the ground up and embedded within data resilience plans.”
This foundation-building approach is becoming a competitive differentiator. Organisations that treat data portability and accessibility as core architectural principles are positioning themselves to capitalise on the broader shift towards data sovereignty and AI-driven operations.
“Without clarity on who within the organisation owns what data, and whether it’s usable, innovation will stall,” Hanson warns. His perspective reflects a broader industry recognition that the Data Act’s impact extends well beyond European borders, particularly as businesses prepare for similar regulations emerging globally.
The Implementation Imperative
The stakes are particularly high for manufacturers of connected devices, who must redesign products by September 2026 to provide real-time data access to users and third parties—including competitors. This “access by design” requirement is forcing fundamental business model reevaluations across industries from automotive to industrial equipment.
Meanwhile, cloud service providers face immediate obligations around switching facilitation and fair contractual terms, with new “blacklist” and “greylist” categories making many common contract provisions unenforceable.
“Taking proactive action now won’t just benefit organisations with compliance today, but tomorrow as well,” Pfaelzer notes. “As portability and data sovereignty become increasingly central to digital operations, having secure yet accessible data will be a key differentiator – both in terms of compliance, but also as a competitive advantage.”
Getting Edge Over the Laggards
Hanson’s assessment is stark but clear: “For the EU Data Act to deliver on its promise, businesses must invest in strong foundations: data quality, lineage, governance and control. The winners in Europe’s data economy won’t be those with the most data, they’ll be those who can prove it’s fit for purpose.”
Early indicators suggest this prediction is already materialising. Companies treating the Data Act as a transformation opportunity are developing new data products, partnership models, and competitive strategies. Those viewing it merely as compliance overhead risk handing competitors significant advantages in an increasingly data-driven economy.
As enforcement begins and the September 2026 product redesign deadline approaches, the Data Act represents more than regulatory compliance—it’s become a litmus test for how businesses adapt to the new realities of the European data economy. The question isn’t whether companies can afford to implement these changes, but whether they can afford not to embrace the opportunities they create.
