In recent years, the number of internet-connected products, such as smart devices, has rapidly increased in Europe. This growth generates a large amount of data that can be reused, driving innovation and competitiveness in the EU. The Data Act is a European Union regulation designed to boost the data-driven economy. Its goal is to make data more accessible and usable, promoting innovation and increasing its availability. The law also aims to ensure that the value of data is fairly distributed among all actors in the data economy. Additionally, it specifies who can use certain data and under what conditions.

One of the main benefits of this Data Act (EU) is the “Greater Control for Users,” as it gives individuals and businesses that own or use connected devices more control over the data they generate.

How does this law benefit users and businesses?

1. Greater Control for Users: It gives individuals and businesses that own or use connected devices more control over the data they generate.
2. Incentives for Innovation: It maintains incentives for those who invest in data technologies.
3. Fairness in the Cloud Market: It seeks a fairer and more competitive market for cloud computing services.
4. Protection against Unfair Contract Terms: It protects businesses, especially small and medium-sized enterprises, against unequal contracts related to data sharing.
5. Data Access in Emergencies: It allows public entities to request data in exceptional situations, such as during public emergencies.
6. Data Protection against Foreign Governments: It establishes safeguards to prevent third-country governments from illegally accessing data stored in the EU.
7. Interoperability: It ensures that data can flow smoothly between different sectors and countries within the EU.

Interoperability is another key benefit of the Data Act (EU), ensuring that data can flow seamlessly between different sectors and EU countries.

When does it come into effect?

The Data Act was published in the Official Journal of the EU on December 22, 2023, and will be applicable starting September 12, 2025. This law complements the Data Governance Act, which aims to build trust in voluntary data-sharing mechanisms. Together, both laws aim to establish a single data market in the EU, preventing duplication and conflicts.

How is the Data Act structured?

The Data Act is organized into several chapters that address specific topics:

• Chapter I: General Provisions: Defines the scope of the law and key terms.
• Chapter II: Data Sharing in IoT: Allows users of connected devices to access and use the data they generate.
• Chapter III: Data Sharing Between Businesses: Sets clear conditions for mandatory data sharing between companies.
• Chapter IV: Unfair Contract Terms: Protects businesses against unequal contracts.
• Chapter V: Data Sharing with the Government: Allows public entities to access private data in exceptional situations.
• Chapter VI: Switching Between Data Services: Facilitates interoperability and switching between cloud computing services.
• Chapter VII: Illegal Data Access by Foreign Governments: Protects non-personal data from illegal access by third-country governments.
• Chapter VIII: Interoperability: Sets criteria to ensure data flow between sectors and member states.
• Chapter IX: Enforcement: Designates competent authorities in each member state to monitor and enforce the law.

The Data Act is a significant step toward creating a single data market in the EU. By establishing clear and fair rules, it fosters innovation and competitiveness, ensuring that the value of data is distributed equitably for the benefit of the European economy and society.