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What is the proposed EU Data Act?

11 Jan 2023. 15:58
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We tell you all about the new proposal of Data Act of the European Union. Don't miss it!

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Thanks to digitalisation, there has been an increasing trend in the volume of data in recent years. Data is probably one of the most valuable sources of information that companies possess. Ultimately, it shapes the way we live, consume and produce. It also helps us innovate and grow in different areas. For example, data-driven innovation can be used from improving mobility to optimising public processes.

Data protection has thus become a fundamental right of all natural persons to protect their personal data. Any company holding customer data must comply with this duty. Poor privacy management could have legal consequences, as well as a poorer reputation and reduced competitiveness, among others.

For these reasons, at the end of 2021, the European Union reached an agreement to push forward the proposed Data Governance Regulation. In addition, a new regulatory initiative was launched: the so-called Data Act. This draft of the new regulation aims to promote a set of rules on access and fair use of data in the framework of the European Strategy. This proposal will facilitate exchange both between sectors and between Member States, addressing legal, economic and technical issues that lead to the under-use of data. Read on to find out more about this proposal!

What is the European Data Strategy and what are its objectives?

The European Data Strategy aims to create a single market for data to flow freely across the Union for the benefit of all.  To this end, the EU will invest in next-generation tools and infrastructure to store and process data. Users will also be given rights and tools to maintain control of their data.

From this strategy, the following measures are proposed:

  • Measures to facilitate access to data. Users of connected devices will have access to their own data, helping manufacturers to invest in high quality content.
  • Measures to prevent abuse of contractual imbalances in data-sharing contracts. SMEs will be protected from unfair contract terms imposed by a party with a much stronger bargaining position. 
  • Measures for public sector bodies to obtain and use (under exceptional circumstances) private sector data. For example: floods, forest fires and other public emergencies.
  • Measures to encourage interoperability leading to a competitive data market. Customers will be able to switch data processing service providers, and safeguards against illegal data transfer. 

Thanks to this new Data Law proposal, your SME will be able to enjoy the following benefits:

  • More competitive prices especially in after-sales services, and in the repair of connected objects.
  • Greater access to data both produced and collected by different device users.
  • New business opportunities based on access to data.

With more information, consumers and users, as well as companies in different sectors (automotive, agriculture, telecommunications, etc.) will be able to make better decisions. For example, wind farms today use industrial data to reduce visual impact and optimise wind energy. Similarly, jet engines are equipped with thousands of sensors that collect and transmit data to ensure efficient operation.

According to a study conducted by the European Union, since 2018, the global volume of data has increased by 530%. This boom has made it necessary to create a Data Act proposal for the benefit of all. In that sense, the European Union is working on a single market for data with the aim of clarifying who can generate value from data and under what conditions they can do so. Follow the news about the new Data Act proposal on our platform!


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