What is it about?

Making data more usable – the Data Act aims to improve, or even enable for the first time, the exchange and utilisation of corporate data for all actors in the economic value chain. It includes regulations for the use of data between businesses (B2B), between businesses and consumers (B2C), and between businesses and authorities (B2G). The Data Act came into effect on 11 January 2024. The rules are to be mandatorily applied from 12 September 2025.

Who is affected?

Affected parties primarily include manufacturers, data holders, and users of connected devices such as household appliances, machinery, or automobiles. Furthermore, new obligations will also be imposed on providers of data processing services, such as cloud providers. Additionally, third-party rights will be strengthened. B2G access rights potentially affect all companies. Exemptions are only provided for small enterprises.

What is in the regulation?

In essence, the Data Act stipulates that only the users of connected devices can decide how data they have helped generate will be handled. Users may include both companies and consumers. The Data Act is intended to enable users to evaluate this data and, under certain conditions, share it with third parties. To ensure that access to and sharing of data is technically possible, manufacturers must design their products and services to allow data access. Easements apply to small businesses.

Additionally, it should become easier for users to switch their data processing service providers. This entails new obligations for data infrastructure providers. They are required to support the transition process and remove all commercial, technical, contractual, and organisational obstacles. Furthermore, a gradual reduction of switching fees is planned.

Beyond private actors, extended access rights will also be granted to public institutions. For instance, a data holder must provide data to a public institution upon request if there is an "exceptional need" for data usage. An exemption applies to small and medium-sized enterprises (SMEs).

You can find the Data Act at eur-lex.europa.eu.

Example B2G: Emergency

In the event of an emergency, such as a natural disaster, a public authority may require companies to provide data free of charge. Should the state merely seek to fulfil its legal obligations and cannot acquire data from other sources, the data holder may request compensation for providing the data.

Example B2B: Machine Data

In the industry, machines and sensors generate large volumes of data. Various stakeholders have an interest in using this data. For example, the manufacturer of an automation component might want access to the operating data of its product installed in a machine operated by a third party. Currently, such matters can largely be governed by contracts. However, challenges often arise due to the unequal market power of contractual parties, which can result in unilateral terms—such as the exclusion of usage rights. To counter this, the Data Act proposes granting the user the exclusive right to determine the usage of their data and, if necessary, share it with third parties.

What is important for businesses now?

A broader utilisation of data facilitates productivity and growth. To achieve this, no one should have exclusive decision-making authority over its usage. Users and data holders should be allowed to use data, they helped generate, within their legitimate interests.

Data is a significant competitive advantage for many firms. Sensitive data and trade secrets must therefore be adequately protected to provide incentives for investments in data-driven innovations.

Complex contractual and technical requirements, as well as vague definitions, can overwhelm or deter SMEs. Thus, it is crucial that the regulations are clear, comprehensible, and practically implementable—without excessive bureaucratic burdens.