Brussels,

DIGITAL EUROPE

Data Act

The Data Act Regulation is not yet in force
The proposed EU Data Act is part of the broader EU Data Strategy, which aims to create a single market for data within the EU. The Act is expected to be a key piece of legislation that will remove barriers to the free flow of data and facilitate access to data in a secure and trusted manner.

One of the main objectives of the Data Act is to promote data sharing across borders and between sectors. To achieve this, the Act proposes the development of common European data spaces in strategic sectors such as health, energy, and mobility. These data spaces would facilitate the exchange of data and ensure that data is accessible to those who need it while protecting privacy and security.

The Act would also establish clear rules for the use of data, including rules for data protection and data ownership. It would encourage the development of data intermediaries that could help connect data users with data providers while ensuring that data is used in a responsible and ethical manner.

EU Data Act is intended to promote innovation and competitiveness in the digital economy by unlocking the full potential of data. It is still being developed, and the exact details of the proposal are subject to change, but it is expected to be a significant piece of legislation that will shape the future of data use and sharing in the EU.
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The DGA also includes provisions for the enforcement of the new rules, including the establishment of new mechanisms for cooperation between EU member states and the development of sanctions for non-compliance.

Main Points

  • The Act aims to create a single market for data within the EU by removing barriers to the free flow of data and facilitating access to data in a secure and trusted manner.
  • It proposes measures to increase legal certainty for companies and consumers generating data, making it easier to transfer data between service providers and encouraging more actors to participate in the data economy.
  • The Act also includes measures to prevent abuse of contractual imbalances that hinder fair data sharing and protect SMEs against unfair contractual terms imposed by parties with a significantly stronger market position.
  • Public sector bodies will be able to access and use data held by the private sector that is necessary for specific public interest purposes, such as responding quickly and securely to a public emergency while minimizing the burden on businesses.
  • The Act includes new rules for customers to effectively switch between different providers of data-processing services to unlock the EU cloud market and promote data interoperability.
  • It clarifies the role of the sui generis database right in relation to databases resulting from data generated or obtained by IoT devices to ensure the balance between the interests of data holders and users is in line with the broader objectives of the EU data policy.

Benefits

  • The Data Act is expected to drive innovation and job creation in the EU, allowing the EU to lead the second wave of innovation based on data. 
  • Users of connected products will have more control over the data they generate, allowing them to enjoy the benefits of the digitization of products. Aftermarket service providers will be able to compete on an equal footing with manufacturers, potentially leading to lower prices and longer product lifespans. 
  • Availability of data about the functioning of industrial equipment will allow for factory shop-floor optimisation: factories, farms and construction companies will be able to optimise operational cycles, production lines and supply chain management, including based on machine learning.
  • SMEs will have more opportunities to compete and innovate based on the data they generate, and the ability to transfer data to service providers will encourage more actors to participate in the data economy.