Welcome to Update 1 of our series dedicated to keeping you informed about the latest developments on the Data Act and Data Governance Act. In the upcoming posts, we will share updates and discuss the practical implications of this legislation for organizations.
The objectives of the Data Act
In February 2020, the European Union announced its European Strategy for Data, aiming to position the EU as a frontrunner in the era of a data-driven society. The Data Act is a key component of this data strategy and complements the Data Governance Act of November 2020 and other proposals to regulate data.
While the Data Governance Act intends to establish processes and structures to promote data sharing by companies, individuals, and the public sector, the Data Act aims to clarify who can generate value from data and under which conditions.
The Data Act’s main objective is to create a harmonized framework for data generated by internet-enabled products and services across all economic sectors in the EU. To that end, the Data Act defines rules for fair access to and use of such data, promoting the development of innovative products or services and stimulating innovation in the aftermarkets.
In addition, the regulation seeks to facilitate switching between cloud and other data processing services and to enhance the interoperability of data, data sharing mechanisms, and services.
Key events of the Data Act
On 23 February 2022, the European Commission published its proposal for the EU Data Act.
As part of the trilogue negotiations, the European Parliament and the Council of the European Union reached a political agreement on the Data Act in June 2023.
The final text of the Data Act was formally approved by the European Parliament and the European Council on 27 November 2023.
The recently approved text can be found here.
Looking ahead: What is next?
The Data Act is expected to be published in the EU’s official journal before the end of 2023.
It will then enter into force 20 days after its publication in the official journal.
As an EU regulation, the Data Act is directly applicable in the EU Member States, and the majority of its provisions will apply 20 months after its date of entry into force.
In Update 2, we will discuss the material and personal scope of the Data Act.
Today’s adoption will be a catalyst for a Europe fit for the digital age. The new law will unlock a huge economic potential and significantly contribute to a European internal market for data. Data trading and the overarching use of data will be boosted, and new market opportunities will open to the benefit of our citizens and businesses across Europe.