Telecoms & Utilities · European Union · Contracts

Telecom Contract Lock-In in the EU: The 24-Month Limit Under the European Electronic Communications Code

Some operators try to stretch commitment periods past two years through device financing or shrinking penalty clauses. EU law sets a hard ceiling on this — and it's stricter than many providers let on.

The 24-month ceiling

Article 105 of the European Electronic Communications Code (Directive (EU) 2018/1972) caps the maximum initial commitment period for a telecom contract at 24 months. Member states can set a shorter national maximum — Denmark, for example, limits it to just 6 months — but no EU country can allow a longer initial lock-in than 24 months for consumer contracts.

Every EU country had to transpose this into national law; full transposition across all 27 member states was only completed in August 2024, so if you're in a country that implemented it later, check your national telecom regulator for the exact date the rule became enforceable for your contract.

Auto-renewal and termination rules

The EECC also requires that contracts can be terminated at any time with a notice period of one month or less, without costs unrelated to the actual provision of the service. It sets rules on automatic prolongation of contracts too — a contract can't quietly roll into a new extended commitment period without the customer's active, informed consent.

Device financing isn't a loophole — with limits

Providers can legitimately offer longer combined agreements when a device is being paid off in instalments, since the equipment cost is a separate financial obligation from the service commitment itself. What providers cannot legally do is use device financing purely as a mechanism to extend the *service* lock-in beyond 24 months in substance while calling it something else — national regulators have taken enforcement action against practices designed to disincentivise switching.

How to check and challenge an overlong commitment

  1. Check your contract summary for the stated initial commitment period — this must be disclosed clearly under the EECC's contract summary requirements.
  2. If it exceeds 24 months (or your country's shorter limit) for the core service itself, distinguish this from any separate device instalment plan.
  3. If the service commitment itself is being extended past the legal maximum, raise this with your national telecom regulator, referencing Article 105 of the EECC.
  4. If you're being charged an early exit penalty, ask for the calculation — it should be proportionate to the remaining commitment, not a flat punitive fee unrelated to what's actually left owing.

What this means practically

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