How do the Chapter IV unfair-contract-term transition rules work under the Data Act?
Chapter IV applies to contracts concluded after 12 September 2025. For contracts concluded on or before that date, Chapter IV applies from 12 September 2027 only if the contract is of indefinite duration or is due to expire at least 10 years from 11 January 2024.
Legal and procurement teams should split contract inventories into new contracts, older indefinite contracts, older long-duration contracts, and older contracts outside the Article 50 transition rule. The review file should identify the data-access, data-use, liability, remedies, breach, or termination terms being assessed under Chapter IV.
- Flag contracts concluded after 12 September 2025 for Chapter IV review at negotiation.
- For pre-application contracts, evidence whether the contract is indefinite or expires at least 10 years from 11 January 2024.
- Keep redlines, fallback clauses, negotiation notes, and the reason a term is treated as in or out of Chapter IV.
Article 50 sets separate Chapter IV dates for new contracts and certain older indefinite or long-duration contracts.
Commission FAQ explains that the Chapter IV transition gives parties time to renegotiate older covered contracts.