The potential of industrial data is to be better utilized for more innovation and competition in the EU. To this end, the EU Commission presented a new Data Act on Wednesday, February 23, which aims to regulate fair access to data generated by the use of networked devices. According to the Brussels authority, 80% of industrial data in the EU remains unused to date. It expects the new rules to increase the EU's gross domestic product by 270 billion euros by 2028. However, the EU states and the European Parliament must first negotiate the data law and find a common approach.

More control over data

According to the authority, the law, which follows several other digital initiatives by the EU Commission, is intended to clarify legal, economic and technical problems regarding access to data. According to the Association of German Chambers of Industry and Commerce, legal uncertainties are the biggest problem for companies when it comes to the increased use of data. "Small and medium-sized companies in particular will be disproportionately burdened," said Martin Wansleben, Managing Director, on Wednesday. Simplified regulations or exemptions are urgently needed.

According to the EU Commission, it is currently often unclear who is allowed to do what with the data that is generated when using a networked dishwasher or industrial machine, for example. In many cases, contracts also stipulate that all data may only be used by the manufacturer. The Data Act is intended to give consumers and companies more control.

The EU Commission cited the example of a car owner who should be able to decide in future to share data with their insurance company. Data sets from many users could therefore also contribute to the development of new digital services. Consumers could also benefit from new providers making repairs or spare parts better and cheaper. Factories, agricultural businesses and construction companies could also benefit from this. The EU Commission predicts that the real-time analysis of data will lead to savings of 10 to 20% in the transport, building and industrial sectors by 2025.

According to the proposal, small and medium-sized enterprises should be protected from unfair contracts by equipment manufacturers. At the same time, the aim is to prevent data from being used in a way that could harm manufacturers' business.

In exceptional cases, such as a health crisis or a forest fire, public authorities should also benefit from the new data law. Companies in possession of data would then be obliged to provide the data. Users of cloud services should also be able to move their data to other services more easily.

Transparency and information obligations - rejection from manufacturers and service providers

The impact of the Commission's proposals is likely to be significant. They would "fundamentally change the rules of the data economy", said David Bomhard, lawyer at the law firm Noerr and expert in artificial intelligence and the data economy. He speaks of "significant effects on the commercialization of data and the design of data licensing agreements".

At the same time, manufacturers of smart products will have to adapt to numerous technical and legal challenges, as Michael Kraus, lawyer for information technology law at the commercial law firm CMS Germany, said. "They have to design their products and services in such a way that they technically enable access to the data. Legally, they are subject to transparency and information obligations, among other things." Accordingly, the proposal was rejected by the German Association of the Automotive Industry. "The Data Act threatens to become a stumbling block for the industry in Europe and massively restrict its global competitiveness," warned President Hildegard Müller. Europe should "focus on market-driven innovations and voluntary cooperation and platforms."

--- (dpa)