The Data Act: What framework companies really need for data sharing

May 16, 2022

This regulation is intended to regulate future access to and use of data in the European Union. It includes requirements for access, usually by corporate users, to data generated by their networked devices, rules for data access and data use by government agencies, data sharing contracts and cloud switching. The aim of the Data Act is that more data is available in Europe and that the potential of data management can be exploited. However, a balance needs to be found: On the one hand, greater legal certainty and improved data access will increase potential for users, since more data will enable new and improved products and processes. On the other hand, the product manufacturers' incentives to innovate and invest can be reduced because monetization is made more difficult. There is still a clear need for improvement in the draft here. The great complexity and depth of detail must be reduced in order not to overwhelm companies. The protection of trade secrets must also be given greater focus so that European companies do not lose competitiveness as a result of the Data Act.