European Data Act setting rules for big tech
Big tech companies and other providers of cloud and data processing services will have to follow new rules on who can use and access data generated in the EU across all economic sectors, according to the European Data Act proposed by the EU Commission. American big tech companies have audibly protested against strict European rules for transfer of data from the EU to the US. The US and EU have for years tried to agree on a data agreement.
The Data Act lays out rights and obligations on the use of EU consumer and corporate data generated in smart gadgets and machinery as well as consumer goods. The proposal is sent to the European Parliament.
The Commission said the Act is the last horizontal building block of its data strategy and will play a key role in the digital transformation, in line with the 2030 digital objectives.
“We want to give consumers and companies even more control over what can be done with their data, clarifying who can access data and on what terms”, said the Commission’s vice president Margrethe Vestager.
Thierry Breton, Commissioner for Internal Market, said that “The Data Act will ensure that industrial data is shared, stored and processed in full respect of European rules. It will form the cornerstone of a strong, innovative and sovereign European digital economy.”
The proposal for the Data Act includes:
- Measures to allow users of connected devices to gain access to data generated by them, which is often exclusively harvested by manufacturers; and to share such data with third parties to provide aftermarket or other data-driven innovative services. It aims to maintain incentives for manufacturers to continue investing in high-quality data generation, by covering their transfer-related costs and excluding use of shared data in direct competition with their product.
- Measures to rebalance negotiation power for SMEs by preventing abuse of contractual imbalances in data sharing contracts. The Data Act aims to shield them from unfair contractual terms imposed by a party with a significantly stronger bargaining position. The Commission will also develop model contractual terms in order to help such companies to draft and negotiate fair data-sharing contracts.
- Means for public sector bodies to access and use data held by the private sector that is necessary for exceptional circumstances, particularly in case of a public emergency, such as floods and wildfires, or to implement a legal mandate if data are not otherwise available. Data insights are needed to respond quickly and securely, while minimising the burden on businesses.
- New rules allowing customers to effectively switch between different cloud data-processing services providers and putting in place safeguards against unlawful data transfer.
The Commission said that consumers and businesses will be able to access the data of their device and use it for aftermarket and value-added services, like predictive maintenance. “By having more information, consumers and users such as farmers, airlines or construction companies will be in a position to take better decisions such as buying higher quality or more sustainable products and services, contributing to the Green Deal objectives.”
“Aftermarkets services providers will be able to offer more personalised services, and compete on an equal footing with comparable services offered by manufacturers, while data can be combined to develop entirely new digital services as well.”
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