A political agreement was reached today between the European Parliament and the Council of the EU on the European Data Act (‘Data Act’) – the new law regulating who can access data and under what conditions.

The European Commission welcomed this agreement, stressing that “the Internet of Things revolution is leading to exponential data growth”, noting that “the projected volume of data is expected to explode in the coming years” and that “a significant amount of industrial data remains unused, while offers a lot of untapped potential.”

“The data act aims to boost the EU’s data economy by freeing up industrial data, optimizing its accessibility and use, and promoting a competitive and reliable European cloud market. It seeks to ensure that everyone reaps the benefits of the digital revolution,” the Commission’s statement said.

For its part, the European Parliament points out that the “Data Act” aims to stimulate innovation by eliminating barriers that prevent access to data. The new data law establishes rules governing the sharing of data generated through the use of connected products or related services (eg Internet of Things, industrial machinery) and allows users to access the data they generate. It will contribute to the development of new services, especially in artificial intelligence, where huge amounts of data are required to train algorithms. It also aims to make after-sales services and repairs of connected devices cheaper. In exceptional circumstances or emergencies, such as floods and fires, public sector bodies can access and use data held by the private sector, the new law states.

Specifically, the data act includes the following:

– Measures that allow users of connected devices to access data generated by those devices and by services related to those devices. Users will be able to share that data with third parties, boosting aftermarket services and innovation. At the same time, manufacturers are still encouraged to invest in producing high-quality data, while their trade secrets are still protected.

– Measures to provide protection against unfair unilaterally imposed contractual clauses. The measures aim to protect EU companies from unfair deals, promote fair negotiations and enable SMEs to participate more confidently in the digital market.

– Mechanisms by which public sector bodies will be able to access and use data held by the private sector in emergencies in areas of public interest, such as floods and bushfires, or in the implementation of a legal mandate, when the required data is not readily available by other means.

– New rules that give customers the freedom to switch providers of cloud computing data processing services. These rules aim to promote competition and choice in the market while preventing lock-in to a particular provider. In addition, the data act includes safeguards against illegal data transfers and guarantees a more dynamic and secure data processing environment.

– Measures to promote the development of interoperability standards for data sharing and processing, in line with the EU’s standardization strategy.

Commission Vice-President for the Digital Era, Margrethe Vesteyger, said: “This is an important milestone on the way to a single market for data. The Data Act will optimize the use of data by improving the accessibility of data for individuals and businesses. This is particularly good news for our digital transformation.”

The informal agreement reached today will need to be approved by both Parliament and the Council to become law.