Imagine you have multiple technological devices at home: a phone, a computer, and a smart TV. For you to use these devices seamlessly, they need to “speak the same language.” This is what we seek with interoperability: ensuring that data from different sources can be used smoothly and efficiently. This is especially crucial for improving research and developing new products or services.

Chapter VIII of the Data Act (EU) focuses on Interoperability and Data Spaces, and here are the key aspects to understand:

Who is affected?

This chapter is primarily directed at two groups:

1. Participants in Data Spaces: If you are part of a data space that shares or offers data to others, this part of the law impacts you.
2. Service Providers: This includes providers of smart contracts and data processing services.

What needs to be done in practice?

1. Accessible Description: If you participate in a data space, you need to have a clear and public description of the structures and formats of the data you handle.
2. Interoperability: You must ensure that data-sharing agreements (like smart contracts) are interoperable, meaning they can work well with different systems and technologies.
3. Requirements for Providers: Providers of smart contracts must ensure that these contracts are executed properly and are resistant to external manipulation.

How does the European Commission help with interoperability?

The Commission has several responsibilities to facilitate interoperability:

• Assessment of Barriers: It identifies obstacles that hinder good interoperability and prioritizes which areas need standardization.
• Request for Standards: It can ask European standardization organizations to develop harmonized standards.
• Common Specifications: If an adequate standard is not achieved, the Commission can introduce common specifications, based on feedback from data innovation experts.

This Chapter VIII of the Data Act is essential to ensure that data can flow and be used without barriers between different systems, fostering a more efficient and productive environment for innovation and the development of new services.

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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.

La entrada Data sharing in IoT: what businesses and consumers need to know about the Data Act (EU) se publicó primero en ITELLIGENT.

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.

La entrada Data Act (EU): seven reasons to understand its impact se publicó primero en ITELLIGENT.