In today’s data-driven world, the EU Data Act (Regulation 2023/2854) is a landmark piece of legislation that aims to redefine how data is accessed, shared, and used. Effective from January 11, 2024, and fully applicable by September 12, 2025, this regulation seeks to create a fairer and more competitive data economy. By empowering users and establishing clear rules for businesses, it promises to reshape the landscape for the ICT and tech sectors.
This blog outlines what the Data Act entails and provides actionable insights for businesses to stay compliant while seizing the opportunities it presents.
Understanding the EU Data Act
The Data Act sets out harmonized rules on fair data access and use for connected products and services, ensuring equitable value distribution among stakeholders. It also fosters innovation by making data more accessible and actionable for businesses.
Key Features of the Data Act
- User Data Rights: Users of connected devices (such as IoT devices or industrial machinery) gain the right to access and control the data these devices generate.
- Business-to-Business Data Sharing: Companies are required to share data under fair and equitable terms, preventing larger organizations from exploiting smaller players.
- Public Sector Data Access: In cases of emergencies or crises, public authorities can request access to privately held data for public interest purposes.
- Cloud Service Portability: The regulation makes it simpler and more cost-effective for businesses to switch between cloud service providers, enhancing competition and preventing vendor lock-in.
- Data Protection and Sovereignty: Strict measures are implemented to safeguard data from unauthorized access, particularly by third countries.
Why ICT and Tech Companies Need to Pay Attention
For ICT and tech companies, the Data Act is more than just a compliance requirement—it’s a call to rethink how they manage and share data. The regulation touches operational processes, technical infrastructure, and business strategies. While compliance may introduce challenges, it also opens the door to innovation and new market opportunities.
How to Prepare: Practical Steps for Businesses
1. Build Systems for Data Sharing
Develop robust solutions, such as APIs or secure data-sharing platforms, to provide users and partners with seamless access to data. These systems should include intuitive interfaces to make data requests easy to manage.
2. Update Contracts and Legal Frameworks
Review all data-sharing agreements to ensure they comply with the fairness principles outlined in the Data Act. Collaborate with legal experts to align terms and conditions with regulatory requirements.
3. Establish Strong Data Governance
Create and implement policies for managing, storing, and sharing data. Focus on maintaining high-quality, accurate, and interoperable datasets to ensure compliance and usability.
4. Enhance Data Security
Strengthen cybersecurity measures to protect sensitive data from unauthorized access. Employ advanced encryption techniques and anonymization methods to safeguard information.
5. Facilitate Cloud Migration
Develop tools that make it easy for customers to transition between cloud service providers. Offer open and interoperable solutions to avoid practices that lock users into your services.
6. Prepare for Public Sector Data Requests
Design clear protocols to handle data requests from public authorities during emergencies. Identify the types of data likely to be requested and streamline access processes for quick compliance.
7. Educate Your Workforce
Train employees on the implications of the Data Act for their roles. Conduct workshops to reinforce knowledge on compliance, data ethics, and security best practices.
8. Invest in Interoperability
Adopt open standards and technologies that enable seamless data sharing across different platforms and systems, fostering collaboration and innovation.
9. Monitor Compliance with Regular Audits
Conduct periodic audits to ensure ongoing compliance. Form a dedicated team to oversee regulatory updates and implementation efforts.
10. Engage with Industry Stakeholders
Collaborate with industry associations to exchange best practices and solutions. Engage policymakers to stay informed and contribute to shaping implementation guidelines.
Opportunities for Growth and Innovation
While the Data Act demands significant adjustments, it also creates avenues for growth:
- Empowering Smaller Players: Startups and SMEs can now access data from larger entities, leveling the playing field and fostering innovation.
- New Revenue Models: Businesses can monetize data-sharing services by creating compliant platforms and ecosystems.
- Building Customer Trust: Transparency and fair practices will enhance user trust, helping companies strengthen their brand reputation.
The Secondary Data Opportunity
One of the lesser-highlighted yet transformative aspects of the Data Act is its focus on secondary data use. Secondary data refers to information generated during the use of connected devices or services that goes beyond its primary purpose—for example, operational logs, performance metrics, or environmental data collected by IoT devices.
For ICT companies, this creates a unique opportunity to leverage secondary data in ways that drive innovation. By analyzing and repurposing this data, businesses can develop new insights, improve existing products, and create entirely new services. For example, predictive maintenance solutions, real-time analytics platforms, or sustainability-focused applications can thrive by utilizing secondary data streams. Companies that position themselves as leaders in managing and monetizing secondary data will not only enhance their service portfolios but also create new revenue models in an increasingly data-driven market.
The Road Ahead
The EU Data Act represents a transformative shift in the European data economy. For ICT and tech companies, it presents a unique blend of challenges and opportunities. Proactively addressing compliance while embracing the Act’s potential for innovation will enable businesses to thrive in a competitive, data-driven landscape.
By preparing now, your company can turn compliance into a strategic advantage, unlocking new possibilities in the digital economy. The future of data is here!