The Data Act is expected to make sure that fairness in the digital environment is maintained apart from stimulating a competitive data market
The EC’s proposed measures under the Data Act are aimed at creating a fair and innovative data economy. (Credit: almathias from Pixabay)
The European Commission (EC) has proposed new rules under the European Union (EU) Data Act which determine who can use and access data created in the region across all economic sectors.
According to the Commission, the Data Act will make sure that fairness in the digital environment is maintained. The legislation will help in stimulating a competitive data market, open opportunities for innovations driven by data, and ensure that data is more accessible for all, said the EC.
Furthermore, the new rules proposed under the act are expected to result in new, innovative services and more competitive prices for aftermarket services as well as repairs of connected objects.
The proposal for the Data Act covers measures to let connected devices users to get access to data generated by them. It also has steps needed for rebalancing negotiation power for small and mid-size enterprises (SMEs) by stopping abuse of contractual imbalances in data sharing contracts.
For public sector organisations, the Data Act will provide means to access and use data owned by the private sector that is required for unprecedented situations. These include public emergencies such as wildfires and floods or for implementing a legal mandate if data are not available otherwise.
Besides, new rules are being proposed under the law to enable customers to effectively change between different cloud data-processing services providers and implementing safeguards against illegal data transfer.
European Commissioner for Internal Market Thierry Breton said: “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 EC said that the newly proposed rules are the last horizontal building block of its data strategy and will have an important role in the digital transformation, in line with the digital objectives for 2030.
European Commissioner for Competition and Executive Vice-President for a Europe fit for the Digital Age Margrethe Vestager said: “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.
“This is a key Digital Principle that will contribute to creating a solid and fair data-driven economy and guide the Digital transformation by 2030.”
The aim of the Data Act is for maximising the value of data in the economy, said the EC. This will be achieved by ensuring that a larger range of stakeholders gets control over their data and that more data can be used for innovative use while preserving incentives for investing in data generation.