EU Data Act - Key Objectives and Provisions

EU Data Act is a legislative proposal put forward by the European Commission aimed at establishing a framework for the governance and use of data within the European Union. The primary objective of the Data Act is to promote the access to and sharing of data, fostering innovation and enhancing the data economy in Europe. The proposal is part of the broader European strategy for data, which seeks to create a single market for data to unlock the potential of data for businesses, public authorities, and citizens.

Key Objectives of the EU Data Act

1. Facilitate Data Sharing:

   • Promote the sharing of data between businesses, between businesses and public authorities, and among public authorities to enhance collaboration and innovation.

2. Enhance Data Availability:

   • Encourage the availability of data generated by devices, applications, and services, ensuring that users have control over their data and can share it with third parties.

3. Support Innovation:

   • Foster a data-driven economy by enabling access to data for research, development, and the creation of new services and products.

4. Improve Data Governance:

   • Establish clear rules and responsibilities regarding data sharing and access, including the rights and obligations of data holders, users, and other stakeholders.

5. Ensure Fair Access:

   • Create a level playing field for businesses, particularly smaller companies and start-ups, by ensuring fair access to data and preventing data lock-in by dominant platforms.

Key Provisions of the EU Data Act

1. Data Access and Sharing:

   • Provisions to facilitate access to and sharing of data between different stakeholders, particularly focusing on the rights of individuals and businesses to share their data securely.

2. Data Portability:

   • Enhancements to existing data portability rights, enabling users to transfer their data between service providers easily.

3. Public Sector Data:

   • Encouragement for public authorities to make non-personal data available for reuse, especially datasets that can contribute to public interest objectives (e.g., environmental data, health data).

4. Conditions for Data Sharing:

   • Establishes conditions under which data sharing can occur, including fair remuneration for data sharing and the establishment of data-sharing agreements.

5. Technical and Organisational Measures:

   • Guidelines for implementing technical and organisational measures to ensure the security and privacy of shared data.

6. Enforcement and Compliance:

   • Mechanisms for supervision and enforcement, including the establishment of competent authorities within member states to oversee compliance with the Data Act.

Relationship with Other Data Regulations

The EU Data Act is designed to complement existing data protection regulations, such as the General Data Protection Regulation (GDPR), and other initiatives, including the Digital Services Act (DSA) and the Digital Markets Act (DMA). By establishing a clear framework for data sharing and access, the Data Act aims to enhance the overall data landscape in the EU, promoting innovation while safeguarding individual rights and privacy.

The EU Data Act officially came into force on January 11, 2024, but the majority of its provisions will become applicable starting September 12, 2025. 

Entry into Force:

• The Data Act was published in the Official Journal of the EU on December 22, 2023, and entered into force on January 11, 2024.
• Applicability Date:
• While the Act is in force, its core rules and obligations will become applicable on September 12, 2025. 
• Purpose:
• The Data Act aims to create a fairer data economy in the EU by regulating data access and use, particularly for connected devices and cloud services.
• Impact:
• It will impact how businesses handle data, requiring them to provide users with access to data generated by their products and services, and allowing users to share that data with third parties.
• Preparation:
• Organizations should start preparing for the applicability of the Data Act by reviewing their data handling practices and making necessary adjustments to comply with the new rules by September 12, 2025

https://digital-strategy.ec.europa.eu/en/policies/data-act

Summary

The EU Data Act represents a significant step towards creating a more open and competitive data economy in Europe. By facilitating data sharing and improving access to data, the Act aims to drive innovation, enhance collaboration across sectors, and support the digital transformation of the European economy. Understanding the provisions and objectives of the Data Act is crucial for businesses and public authorities operating in the EU to align their data practices with the regulatory framework.