DATA SHARING

More and more companies are discovering the benefits of data sharing. At the same time, politicians are striving to create secure conditions for this.

?? Read interesting facts about this in our latest newsletter.

Data sharing — Challenges and Opportunities

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?? In today’s interconnected world, sharing various data types across industries — from product information to customer behavior to scientific research findings — opens doors to innovation and insights previously untapped.

However, it is not just about sharing; it is about meticulous preparation, ensuring data adheres to quality standards and required formats. With the right technologies and integrations, companies can navigate this landscape efficiently, leveraging shared data to drive growth and competitiveness.

?? Yet, the journey of data sharing is not without challenges. Strict regulations like the EU’s Data Act underscore the importance of compliance and data security.

?? Nevertheless, organizations across diverse sectors are recognizing the immense value of data exchange. Whether it is optimizing supply chains, enhancing customer experiences, or driving research breakthroughs, the benefits of data sharing are vast.

?? Our article delves into this dynamic landscape, exploring both the rewards and precautions necessary for successful data sharing initiatives.?? https://bit.ly/Shared_Data

The EU's Data Act

The Council of the European Union adopted a new “Regulation on harmonized rules on fair access to and use of data” (Data Act).

?? The new law aims to stimulate innovation by eliminating barriers to data access.

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The regulation establishes rules for easy access by users of connected devices, be they companies or individuals, to data generated during their use.

With the new law, manufacturers, and service providers will be obliged to let users access and reuse the data generated by the use of their products or services, from coffee machines, smartwatches, intelligent cars, and manufacturing machinery to wind turbines. Only smartphones and computers are excluded.

The Data Act will allow users to share that data with third parties. For example, car owners could choose in the future to share certain vehicle data with a mechanic or their insurance company.

The regulation also secures the broadest possible access to the data of connected devices to entrepreneurs who could, when using these devices, provide users – with their consent – with additional or competitive services.

Importantly, the Data Act provides the means for public sector bodies, the Commission, the European Central Bank, and EU bodies to access and use data held by the private sector that is necessary in exceptional circumstances, particularly in case of a public emergency, such as floods and wildfires, or to fulfil a task in the public interest.

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The new regulation will enter into force the twentieth day after publication in the EU’s official journal. It shall apply for 20 months from the date of its entry into force (so, it will become enforceable around mid-2025).

However, article 3, paragraph 1 (requirements for simplified access to data for new products), shall apply to connected products and the services related to them placed on the market after 32 months from the date of entry into force of the regulation.

The new regulation preserves member states’ flexibility to organize the implementation and enforcement tasks at the national level. The coordinating authority, in those member states where such coordination role will be required, will act as a single point of contact and be labeled as a ‘data coordinator’.

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The Data Act is another piece of legislation being introduced as part of the European Data Strategy, presented by the European Commission in February 2020. Earlier, in 2022, the Data Governance Act was adopted, which created processes and structures to facilitate data sharing by companies, individuals, and the public sector.

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EU's Data Act presents opportunities and challenges

As with any major legislation, The #EU’s #DataAct presents both opportunities and challenges. Let’s review the key ones.

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User empowerment

The Data Act allows users of connected products (IoT), be they consumers or businesses, to access data generated by their devices. This shift democratizes data access, allowing users to share their data with third-party service providers, fostering innovation, and enhancing user choices.

Unlocked data value in a public emergency

The Act permits public sector bodies to access private sector data during emergencies, such as natural disasters or health crises. This can significantly improve public authorities’ response capabilities, potentially saving lives and mitigating disaster impacts.

Fairer data sharing practices

The law shields European businesses, especially SMEs, from unfair, one-sided practices in data sharing contracts. This will be reinforced by standard contract clauses from the European Commission, making data sharing agreements more transparent and equitable.

Easier switching cloud service providers

Customers gain the liberty to switch #cloudservices providers and transfer data freely. This reduces vendor lock-in and fosters market competition, potentially leading to better services and lower costs. From January 2027, this switching process will be cost-free.

Promoting interoperability

The Act encourages the development of common standards for data sharing and processing. This move towards standardization is expected to enhance compatibility across services and platforms, streamlining operations and reducing barriers for new market entrants.

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Compliance costs & operational challenges

Implementing the requirements of the Data Act can be costly and complex, particularly for smaller businesses. This includes adapting to data sharing frameworks, revising contracts, redesigning connected products and related software, and ensuring compliance with new regulations.

Protection of data, privacy & trade secrets

Increased data sharing and availability can raise not only concerns about privacy but also the disclosure of manufacturers’ trade secrets. Therefore, ensuring data security, privacy, and protection in this new framework will be a critical challenge.

Market disruptions

The Act could disrupt existing business models, particularly for manufacturers who traditionally controlled access to data from their devices. This shift may unsettle established market dynamics.

Technical & infrastructure demands

The requirement for seamless data portability between cloud providers may place significant technical demands on these companies. Ensuring compatibility and smooth transitions could be resource-intensive.

Potential for state overreach

The provision allowing state access to data in emergencies, while crucial, raises concerns about oversight and the potential for abuse. Balancing public interest with individual rights will be key in implementing this law.

For further information on these and other data topics, please contact us at [email protected].