As one of the new legal acts for the digital and data economy, the Data Act is an essential component of the comprehensive EU digital strategy (see also our article “New legal acts for the digital and Data economy“).
Adopted by the European Parliament and Council in November 2023, this directly applicable regulation is now expected to come into force in early 2024 and, after a transition period in 2025/2026, will be directly applicable in every EU member state.
Our partner RA Georg Huber presents the Data Act and its goals in more detail in his current article for the Tyrolean Economic Chamber’s magazine “Tiroler Wirtschaft”. which imposes a number of obligations on manufacturers of connected products and related digital services:
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What is the Data Act about? Huge amounts of data are generated via networked products (keyword: Internet of Things – IoT), for example from vehicles, smartphones, in the smart home and so on connected apps and similar. However, often only the manufacturer and/or the provider has this data. The aim of the Data Act is to make this treasure trove of non-personal data usable on a broad basis and thus increase innovation and value creation in Europe. The Data Act therefore sets out rules for the exchange and sharing of such data.
One example is vehicle data that is generated via sensors in vehicles. Third companies could use this to develop products and software solutions for urban traffic planning and control. The possible applications are almost limitless.
The use of artificial intelligence (AI) reinforces the importance of broad data usage, as AI relies on large amounts of data for training purposes. That’s why there seems to be particularly great development potential here, with not only large companies but also small companies, such as innovative startups, having access to the data.
However, personal data is still subject to the GDPR, which can lead to difficult demarcation questions. Vehicle data is often personal data because it allows conclusions to be drawn about the driver (e.g. acceleration and braking behavior). They may only be passed on if this is permitted under the GDPR.
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For the full article in the Tyrolean Economy – the magazine of the Tyrolean Chamber of Commerce:
Data Act: New obligations for manufacturers of connected products and services