Data Act: a new era of the data economy in the European Union

The data economy is changing. With the Data Act, the European Union takes another step towards the single data market.

What is the Data Act?
Regulation (EU) 2023/2854:

• Horizontal rules on access to and sharing of data generated by connected products (IoT) and digital services,
• Reinforces fairness in access and interoperability,
• Reduces lock-in in data processing services (such as cloud or edge computing).
• Promotes sharing between businesses (B2B), businesses and consumers (B2C), and access by public authorities in exceptional situations (B2G).

Main objective: to ensure that the value of data generated in the EU is widely distributed, and not only concentrated in the hands of manufacturers or digital service providers.

• Greater access and control for users of connected products;
• Clear and proportionate rules for sharing with third parties;
• Measures to facilitate switching between data processing service providers;
• Safeguards against international data transfers that could compromise the EU’s strategic interests.

4 Pillars

Pillar 1 – Data sharing between businesses and consumers: obligations for access to data from connected products and related services

• Access “by design and by default”
• Transparency regarding data and access
• Right of access and right to share with third parties

Pillar 2 – Fair conditions (FRAND): the data holder is obliged to share data under FRAND conditions – Fair, Reasonable and Non-Discriminatory

• Reasonable price (may include compensation);
• No discrimination between similar recipients;
• Prohibited clauses: it is forbidden to impose clauses restricting subsequent use of data for lawful purposes, except in strictly defined cases.

Pillar 3 – Switching of providers
Data processing services:

• Cloud computing (IaaS, PaaS, SaaS);
• Edge computing;
• Other remote data processing services.

Types of switching:

• From one provider to another;
• From one environment to another (e.g., cloud to on-premises);
• From one service model to another.

Obligations for providers:

• Removal of commercial, technical and contractual obstacles to switching;
• Free transition for 3 months;
• Clear information on features, compatibility and transition deadlines;
• Interoperable and structured format for data export;
• End of exit fees by September 2027.

Pillar 4 – Sovereignty and Interoperability:

• Limits on data sharing with third countries;
• Obligation to use European or open standards for data representation, formats and interfaces (the European Commission may also adopt implementing acts to impose technical interoperability requirements).

Download this quick guide in the attachment below.