The EU Just Killed ARR
paid.ai
The EU Just Killed ARR
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Re: The EU Just Killed ARR
#2What is the issue?
There is 2 month's notice.
If you have bad services and customer don't need it any more makes sense to allow termination, instead of contining to bill customors for nothing.
This is more healthy and would push more SAAS to focus on Sales not building tricks to force retain customers!
Re: The EU Just Killed ARR
#3What is the issue? There is 2 month's notice. If you have bad services and customer don't need it any more makes sense to allow termination, instead of contining to bill customors for nothing. This is more healthy and would push more SAAS to focus on Sales not building tricks to force retain customers!
The issue is you can't use the "I'll give you a deeper discount for a 3 year contract" line anymore.
It'll potentially create a situation where customers in the US pay a lot less because they still have that incentive.
Re: The EU Just Killed ARR
#4The legislation applies to “Connected Products” which most SaaS services aren’t
Re: The EU Just Killed ARR
#5The legislation applies to “Connected Products” which most SaaS services aren’t
It also applies to "data processing services":
"Article 25, Contractual terms concerning switching … The rights of the customer and the obligations of the provider of data processing services in relation to switching between providers of such services …"
This explains it in a lot more detail: https://www.dlapiper.com/en-gb/insights/publications/2025/07...
Re: The EU Just Killed ARR
#6What is the issue? There is 2 month's notice. If you have bad services and customer don't need it any more makes sense to allow termination, instead of contining to bill customors for nothing. This is more healthy and would push more SAAS to focus on Sales not building tricks to force retain customers!
The issue is you can't use the "I'll give you a deeper discount for a 3 year contract" line anymore. It'll potentially create a situation where customers in the US pay a lot less because they still have that incentive.
I think you could still do it but it would involve some clever financial engineering.
Re: The EU Just Killed ARR
#7Seems like great for competition, if someone can steal your business you have a bad business.
Re: The EU Just Killed ARR
#8This is wonderful, occasionally the EU bureaucracy gets something right
Yes it’s good for customers, but it’s also good for vendors. They are no longer subject to this arbitrary and destructive pressure from investors, and may see a revenue increase as customers lower the bar for signing up
The right measure of ARR is statistical anyway. Just because a contract lasts for a year in no way establishes the contract as recurring. It has been a very arbitrary standard
Re: The EU Just Killed ARR
#9I can't wait to move to Europe and end my Adobe subscription that I forgot to cancel a few months ago.
Re: The EU Just Killed ARR
#10Earlier quoted context omitted.
The issue is you can't use the "I'll give you a deeper discount for a 3 year contract" line anymore. It'll potentially create a situation where customers in the US pay a lot less because they still have that incentive.
I think you could still do it but it would involve some clever financial engineering.
Prepaid annual (or 3-year) contract. No refund once period started.
I think that's how it's generally been. I don't see how this changes things.