The European Parliament and the Council of the EU have reached a provisional agreement on a new Data Act, aiming to regulate the usage and accessibility of consumer and corporate data within the European Union. EU industry chief Thierry Breton expressed his support for the agreement, describing it as a significant milestone in reshaping the digital landscape and fostering an innovative and open EU data economy.
The primary objective of the legislation, as outlined by the European Commission in a press release, is to grant EU end users greater control over the data generated through the use of connected devices. This includes the right to access data generated by smart objects, machines, and devices and the option to share it with external parties if desired.
The preliminary agreement encompasses several key provisions. It allows for increased data portability between different cloud providers, promotes the development of interoperability standards, and grants public sector entities the authority to access and utilize data in emergency situations. Additionally, safeguards have been incorporated to prevent unauthorized data transfers.
Concerns have been raised regarding the potential disclosure of trade secrets due to the Data Act's provisions on data sharing. Consequently, the legislation has been amended to enable companies to reject data sharing requests if they anticipate significant and irreparable economic losses as a result.
Regarded as a vital component of the EU's digital transformation, the Data Act is one of five legislative pieces designed to revamp the bloc's digital regulations. These include the Digital Markets Act, Digital Services Act, Artificial Intelligence Act, and the related Data Governance Act, collectively aiming to modernize EU digital policies.
Following the recent provisional agreement, the Data Act will undergo formal approval from both the Council and the European Parliament before becoming law. Companies will be required to comply with the legislation approximately 20 months after its approval, suggesting that it will take a couple of years for the measures outlined in the Data Act to take effect.
