The Data Act aims to harmonize data access policies across cloud vendors and prevent vendor lock-in as part of a broader data governance initiative. The European Commission gave vendors 20 months to comply with the legislation’s data privacy, sharing and portability regulations when it was enacted in January.
CISPE worked with Gaia-X, an EU-based data and cloud advocacy group, to craft specifications around five pillars of cloud data portability and switching processes.
The framework includes provisions for:
The framework comes with initial buy-in from AWS. The largest global provider of cloud infrastructure has been a CISPE member since 2017. The group includes many smaller European cloud providers that compete with AWS and its hyperscaler rivals Microsoft and Google Cloud.
“For smaller customers and vendors seeking to create flexible hybrid and multicloud solutions it is essential that compliance with the Data Act is as seamless and straightforward as possible,” Claudio Abad, CEO at Italy-based provider and CISPE member Deda.cloud, said in the announcement.
EU regulatory scrutiny pushed Microsoft to unbundle Teams from its Office 365 productivity suite globally in April. During the first three months of the year, AWS, Microsoft and Google Cloud responded to passage of the Data Act by eliminating some egress fees to reduce the cost of cloud switching.
Just as the EU’s similarly modeled AI Act — which went into effect in August — has helped shape regulatory concerns beyond the borders of the EU, legal experts expect the Data Act to impact cloud more broadly.
“The Data Act will have far-reaching implications beyond the EU, including in the U.K. and the U.S., where no comparable legislation currently exists,” according to international law firm WilmerHale.
The U.S. Federal Trade Commission initiated an inquiry into cloud market competition in March 2023. While the investigation remains open, its future remains uncertain under a new presidential administration.
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