The Data Act: key provisions and implications
The Data Act, whose main obligations apply as of today, reshapes how data from connected devices can be accessed and shared across Europe. It focuses on increasing the availability of data, improving competition between cloud services providers, and mitigating contractual imbalances that impede equitable data sharing.
Access to IoT data
Under the new rules, users of connected devices (IoT) can access the data generated by their products and, if they wish, share it with third parties. For example, the owner of a connected car will be able to request the manufacturer to share certain data generated by the use of these connected products with a service provider of the owner’s choice.
This will enable insurers to offer innovative and more personalized and competitive insurance products depending on new data sources, for example in the area of connected cars or predictive maintenance. Nevertheless, complex use cases, such as in the automotive sector, will require additional sector-specific guidance and legislation.
Safeguards for businesses
The Data Act significantly strengthens legal certainty for companies and consumers involved in data sharing by preventing unfair contractual terms and establishing safeguards for trade secrets.
Compensation and cloud switching
Data access can be priced to reflect costs, investments, and even a margin, while SMEs and research organisations benefit from reduced fees. Insurers may benefit when acting as data holders. The regulation also aims to facilitate switching between cloud providers at no cost, thus increasing competition between data processing services.
Conclusion
The Data Act strengthens user rights, encourages fairer data markets, and clarifies rules on compensation and cloud switching. While it offers new opportunities for data-driven services, complex use cases, such as in the automotive sector, will require additional sector-specific guidance and legislation.