The "Data Act", already agreed by MEPs and Member States, aims to stimulate innovation by removing barriers to access to data. The new legislation sets out rules for sharing data generated by the use of connected products or related services (e.g. IoT, industrial machines) and allows users to access the data they generate. It will contribute to the development of new services, especially in the field of artificial intelligence, where huge amounts of data are needed to train algorithms. It also aims to make after-sales service and repair of connected devices cheaper. In exceptional circumstances or emergencies such as floods and forest fires, public sector bodies will be able to access and use private sector data, the new law states.

Protecting trade secrets and preventing illegal data transfers

MEPs ensured a clear definition of trade secrets and trade secret holders to prevent illegal data transfers and leaks to countries with weaker data protection rules. They also want to prevent competitors in a certain area from being able to access data for reverse engineering services or their competitors' equipment.

The new law makes it easier to switch between cloud providers - companies that offer network services, infrastructure or business applications in the cloud - and introduces safeguards against illegal international data transfers by these companies. MEPs have ensured that the data law means that customers of cloud services will have the power to negotiate contracts and avoid being "locked in" to a particular provider.

European Parliament President Pilar del Castillo Vera (EPP, ES) said, "The Data Bill is a game changer. Data on the performance of industrial facilities will allow factories, farms and construction companies to optimise operational cycles, production lines and supply chain management." The Data Act will create a new data-agile system allowing easy access to an almost infinite amount of high-quality data. It will help to optimise existing business models and processes, support the development of new ones and create new value. in other words, an opportunity for innovation and competitiveness."

Next steps

The legislation was passed with 481 votes in favour, 31 against and 71 abstentions. It will now need formal approval from the Council to become law.

Background

The volume of data generated by humans and machines is growing exponentially and is becoming a critical factor for innovation by businesses and public authorities (e.g. shaping smart cities). Legislation will allow users to access the data they generate, as 80 % of the industrial data collected is never used, according to the European Commission.

Conference on the future of Europe

The Data Act embodies the principles outlined in the recommendations of the Conference on the Future of Europe (COFOE), specifically proposals 31(7), 35(7) and 35(10), aimed at creating a robust and fair digital economy. It responds to the COFOE vision by advocating a resilient data infrastructure that supports European values and principles. The "Data Law" also supports the digital transformation of public services and the introduction of a common European digital identity that will streamline cross-border digital transactions and services, all while maintaining a comprehensive framework of European standards and guidelines.

(europarl.europa.eu/JaV)