EU Data Act: how it can reshape software budgeting and vendor relationships

Talk to anyone in finance, and they will tell you the same thing: budgeting is never just about the numbers. For finance teams, it’s the time when every cost, contract, and tool in their tech stack comes under review. Rising operational costs and growing scrutiny over technology spend make one question unavoidable: how much value is each platform really delivering?

Now, a new regulatory shift is adding another dimension to that conversation. The EU Data Act, a new framework for data management, which entered into force across the EU on 12 September 2025, is reshaping how organisations handle, share, and transfer their data. Designed to make data access and portability fairer while giving users more control, the regulation also makes switching between software providers easier, a change that will inevitably influence how businesses think about software contracts, compliance costs, and vendor flexibility.

This doesn’t mean CFOs need to react overnight, but they should start planning ahead. As the regulation gradually takes effect, finance leaders who factor regulatory awareness, transparency, and interoperability into their budgeting process today will be better prepared for whatever comes next.

According to the European Commission, the EU Data Act is “a law designed to enhance the EU’s data economy and foster a competitive data market by making data more accessible and usable.” It’s part of the EU’s wider digital strategy — the same one that introduced mandatory e-invoicing — and focuses on ensuring fair access to and use of data, especially in cloud and SaaS environments.

The Act is divided into six key areas, including organisations’ rights to access and transfer their data between vendors more easily. It also requires providers to make this process technically straightforward and financially fair.

At first glance, this may seem more relevant to IT or legal teams than to finance. But by simplifying vendor switching, the regulation is already reshaping how CFOs evaluate software contracts, negotiate renewals, and plan technology budgets.

For finance leaders, there are three core principles to take away: data portability, transparency, and interoperability. These principles influence how contracts are written, how data is managed, and how changing software providers may impact both costs and strategy.

The EU Data Act rebalances the relationship between SaaS vendors and their customers. Chapter IV addresses unfair contractual terms and defines “provisions [that] protect all businesses, in particular SMEs, against [them].” The European Commission’s reasoning is that “contractual imbalances impede equitable data sharing” by making data transfers to a different software provider expensive or technically difficult.

The EU Data Act is part of the EU’s wider digital strategy and focuses on ensuring fair access to and use of data.

In practice, the Act removes vendor lock-in by allowing customers to change providers at any time, regardless of contract duration. As explained by Latham & Watkins, providers must now include a full list of transferable data and digital assets in contracts and assist customers with exit strategies and migrations.

Enforcement of the act will take time, but the direction is clear: software relationships will involve more transparency and accountability. For CFOs, this is an opportunity to revisit vendor contracts, evaluate performance, and reassess the long-term value of every renewal.

When reviewing budgets or renewals, finance and procurement teams should assess how the EU Data Act might affect current and future SaaS contracts.

The first area to focus on is contract flexibility. The EU Data Act reinforces customers’ right to switch vendors more easily, so CFOs should review renewal and termination clauses in existing contracts carefully, particularly around notice periods, automatic renewals, and exit conditions.

The EU Data Act will bring openness and accountability in SaaS, giving CFOs the opportunity to redefine how technology and finance collaborate.

Next comes data portability and costs. Even with simplified transfer processes, data migration can still carry financial implications. Finance leaders should request clarity from vendors on potential migration or export fees, incorporating them into budget planning to avoid surprises.

Finally, finance teams must consider interoperability and transparency. The EU Data Act highlights the importance of tools that integrate well and handle data openly. When assessing vendors and commitments, finance teams should prioritise vendors who can demonstrate strong interoperability and open data policies. This reduces compliance risk, minimises operational friction, and supports smoother transitions if a provider switch becomes necessary.

For example, if an organisation’s expense management or ERP system is hosted by a third-party provider, finance should confirm that the contract allows for data export without hidden costs or restrictions. Proactive reviews like this prevent complexity later on.

As mentioned earlier, finance leaders don’t have to act immediately. Still, they should start mapping where the regulation could impact future vendor decisions so that they can have more strategic discussions around contract renewals and budgets.

With the introduction of the EU Data Act, compliance, transparency, and flexibility are now as essential to budget planning as costs. Weaving these principles early on helps organisations stay compliant and protect their structures from future unexpected costs.

To achieve this, finance leaders must focus on three key areas.

Cross-functional collaboration

CFOs can start by bringing finance, procurement, and legal teams together early in the budgeting cycle. Cross-functional collaboration ensures upcoming renewals and new contracts align with the EU Data Act’s data-sharing and portability standards.

Building adaptability into budgets

Next, build adaptability into budget planning. Managing spend is important, but so is keeping some flexibility for integration work, contract updates, or vendor alignment. This makes it easier to readjust budgets when needed.

Transparency and trust

Transparency is at the root of the EU Data Act, but it also strengthens trust between software providers and customers. At Rydoo, transparency has always been a core value, shaping how we collaborate with customers and share data. This means clear data policies, easy integrations, and open communication, all principles that align naturally with the EU Data Act and support long-term customer confidence.

The EU Data Act marks a major shift in how businesses and software providers work together, reminding finance teams and leaders that adaptability should be at the centre of financial planning. The regulation gives customers more freedom of choice and places transparency, interoperability, and accountability at the core of how technology is managed and valued.

Looking ahead, the Data Act will bring openness and accountability in SaaS, giving CFOs the opportunity to redefine how technology and finance collaborate. Aligning technology strategies with these principles ensures budgets reflect not just short-term efficiency but long-term resilience and adaptability.

Full enforcement will take time, but now is the right moment for finance teams to take a closer look at their tech stack and review vendor contracts for clear data access and portability clauses. Every tool must prove its worth, so companies that invest in transparent, interoperable systems today will be better prepared for whatever regulatory and market changes come next.