The Data Act aims to promote fairness in the digital economy, allowing users to leverage the data generated by connected products they own, rent, or lease. This includes devices such as connected cars, health devices, industrial machinery, and more. The law allows users of these products and related services (like an app to control a washing machine or regulate a refrigerator’s temperature) to access the data they generate. This data can be used to improve services, create new products, and benefit both businesses and consumers.

Chapter II of the Data Act applies to all data generated by the use of connected products or related services that are easily accessible. In this post, we explain six key points that businesses and consumers should know about this European Union law known as the Data Act

What types of data are included?

Included:

• Personal and non-personal data
• Raw and pre-processed data (information directly from sensors such as temperature, pressure, etc.)

Not included:

• Derived or inferred data (like complex analyses)
• Multimedia content (such as movies watched on a connected TV)

How does it work in practice?

Users (those who own, rent, or lease a connected product) can:

• Access the generated data.
• Share this data with third parties.
• Request that the manufacturer (data holder) share the data with a third party.

FOR EXAMPLE:

Company with Excavator:** The excavator’s manufacturer is the data holder; the company operating the excavator is the user.

Connected Refrigerator:** The data holder can be both the company that manufactures the refrigerator and the one that offers the app to regulate the temperature.

Data Provision

Data holders must provide clear information about the types of data being generated and allow users easy and free access to this data.

Limitations and Protection

To encourage innovation and protect investment, the Data Act establishes that:

• Data cannot be used to develop competing connected products.
• There is no obligation to share data with third parties outside the EU.
• Personal data can only be shared with a valid legal basis, such as user consent.

Exceptions and Protection of Trade Secrets

To protect trade secrets and ensure security:

• Data holders and users can agree on measures to maintain confidentiality.
• If these measures are violated, the data holder may suspend the sharing of data.
• Refusal to share data must be reported to a competent authority, and the user can challenge this decision.

Some Benefits for Small Businesses: The Data Act is less strict for micro and small businesses, encouraging the development of new products and services based on data.

In summary, Chapter II of the Data Act aims to facilitate access to and sharing of data generated by connected products, while protecting trade secrets and security, and fostering innovation in the IoT market.