Consensus on EU Data Act to allow users to take back control over data
The bill was approved by the European Parliament in March, but negotiations regarding its final version have been ongoing
The European Parliament and European Council have reached a provisional agreement on the Data Act which aims to regulate the use and accessibility of consumer and corporate data within the bloc.
Last year, the European Commission introduced the Data Act to cover data generated by smart gadgets, consumer products and machinery. The legislation is part of a comprehensive set of measures aimed at curbing the influence of major US technology firms.
"Today ' s agreement will accelerate our Union ' s digital transformation," said Erik Slottner, Swedish minister for public administration, on Tuesday.
"Once the data act enters into force, it will unlock the economic and societal potential of data and technologies and contribute to an internal market for data. It will enhance the single market, allowing data to flow freely within the EU and across sectors for the benefit of our citizens and businesses."
The Data Act puts forward new rules concerning the use of data generated within the European Union, encompassing all economic sectors.
Its primary objectives are to:
- ensure equitable distribution of value from data among participants in the digital realm
- foster a competitive market for data
- create avenues for innovation driven by data
- enhance accessibility to data for all stakeholders
The upcoming legislation will grant consumers and companies within the EU some input in determining the use of data generated by their connected products.
The act includes protective measures to prevent unauthorised data transfers, thus establishing a more dependable and secure environment for data processing. It also encompasses provisions aimed at shielding EU companies from unfair contractual terms that are imposed unilaterally.
These measures strive to ensure that agreements are equitable, promoting fair negotiations and empowering small and medium-sized enterprises (SMEs) to participate with greater confidence in the digital marketplace.
Under the proposed Data Act, there will be mechanisms enabling public sector entities to access and use data held by private sector entities in situations of public emergencies, such as floods and wildfires.
It also allows for data access when implementing a legal mandate, particularly when the necessary data is not readily accessible through alternative sources.
Additionally, the legislation encompasses rules that grant customers the freedom to switch between different providers of cloud data-processing services. These rules are designed to foster competition and choice in the market, and prevent customers from being locked into a single vendor contract.
The EU's Data Act is one of five pieces of legislation which together aim to modernise and regulate various aspects of the digital landscape within the EU. Alongside the Data Act, the EU is currently progressing the Digital Markets Act, Digital Services Act, Artificial Intelligence Act, and Data Governance Act.
"This is a significant milestone in the journey towards a single market for data. The Data act will optimise data use by improving data accessibility for individuals and businesses. This is very good news for our digital transformation," said Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age.
Thierry Breton, Commissioner for Internal Market, noted: "Following the adoption of the Digital Services, Digital Markets and Data Governance Acts, today ' s agreement forms another milestone in our efforts to re-shape the digital space. The Data Act will ensure that industrial data is shared, stored and processed in full respect of European rules. It will create a thriving data economy that is innovative and open, but on our European conditions."
After the recent provisional agreement, the Data Act will now undergo the formal approval process by both the European Council and the European Parliament before it can be enacted as law.
Following its approval, companies will be required to adhere to the Act's regulations, which are expected to take effect approximately 20 months later.
This timeline suggests that it will likely be a couple of years before the measures outlined in the Data Act are fully implemented.