The EU Just Killed ARR

Post by spwa4 » Fri, Sep 19, 2025, 9:21 PM UTC

jdietrich wrote: post #31

arnon wrote: post #3

Earlier 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.

>Nothing in this Regulation prevents a customer from compensating third-party entities for support in the migration process or parties from agreeing on contracts for data processing services of a fixed duration, including proportionate early termination penalties to cover the early termination of such contracts, in accordance with Union or national law. https://eur-lex.europa.eu/eli/reg/2023/2854/oj/eng

Post by [deleted] » Sat, Sep 20, 2025, 2:03 PM UTC

mytailorisrich wrote: post #57

StopDisinfo910 wrote: post #55

Earlier quoted context omitted.

I don't know how the law is framed but generally no refund is illegal because it would be too easy to create loopholes in the law otherwise. What's customary is forfeiting any discount, then a partial refund with eventual early termination processing fees. So if you had an annual subscription with a 10% discount which you stop after 3 months, your refund would be what you have paid minus three months at full price pl…

No refund is perfectly legal. Just continue to offer the service/product, i.e. cancellation only takes effect at end of term as was contractually agreed.

Post by phkahler » Sun, Sep 21, 2025, 12:12 PM UTC

some_random wrote: post #71

bilekas wrote: post #45

Earlier quoted context omitted.

But there is once you remain competitive, if the reason for people staying on your platform is because they're locked in for 3 years then you're not offering a good enough service as others. This opens the market to competition who will offer better services or prices. The free market at work.

First off, we all know that unfortunately just offering the best product is not enough to guarantee that a customer will pick you and stay with you. Secondly, because of the use of ARR as a key metric that lock in has an extra benefit to the SaaS provider in dealing with investors.

Post by mytailorisrich » Sun, Sep 21, 2025, 2:52 PM UTC

basisword wrote: post #94

mytailorisrich wrote: post #60

Earlier quoted context omitted.

How is it a problem? Any bad software companies put a gun to your head to force you to buy their products on their terms? I am an EU citizen, too, and I would like that the EU do not intervene and regulate anything and everything they might think of just for the sake of justifying their jobs... B2C in Europe has very strong consumer protection laws, so terms must be clear and fair. People can then make their own deci…

The problem is that when it comes to software there are some pretty hard to avoid monopolies. Adobe products being a major one that abuses their position and who would be pulled into line with this regulation.