EU Data Act Kills Annual Recurring Revenue (ARR) in SaaS
2025-09-19
The EU Data Act, effective September 2025, dramatically alters the SaaS landscape in Europe. It mandates that all SaaS contracts with EU customers become “cancel anytime” subscriptions, requiring only two months' notice. This effectively ends the reliance on Annual Recurring Revenue (ARR) as a predictable metric. SaaS companies must adapt, focusing on pricing models, customer retention strategies, and mitigating involuntary churn due to customer oversight. Success will hinge on robust customer relationship management and operational resilience, not contract terms.
(paid.ai)
Development
EU Data Act