The Council of the European Union has adopted the Data Act, a significant legislative measure that establishes a harmonized framework for fair access to and use of data in the digital sphere. The Act aims to ensure equitable distribution of data-derived value among various stakeholders, promote a competitive data market, drive data-driven innovation, and enhance data accessibility. The Act includes specific measures such as facilitating the process of switching between cloud service providers, allowing users greater control over their data, and implementing safeguards against illicit data transfers. It also prioritizes the development of interoperable data standards for seamless data reuse across different industries.

The scope of the Act encompasses a wide range of connected devices, from smart home appliances to industrial machinery, granting users access to data generated by these devices, which was previously controlled by manufacturers and service providers. It addresses the need to protect intellectual property rights and trade secrets while ensuring data accessibility. Moreover, the Act tackles concerns around data-sharing agreements, preventing unfair contractual terms and safeguarding against exploitation by entities with significant bargaining power. The Data Act will enter into force twenty days after its publication in the Official Journal of the European Union, with most provisions becoming applicable twenty months later. Provisions related to connected products and services will take effect thirty-two months after enforcement.

Overall, the Data Act is a landmark step in regulating data access and use in the EU. It provides a framework that promotes fairness, competition, innovation, and accessibility, paving the way for a more balanced and dynamic digital ecosystem.

The press release is available here.