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EU agreement on "Data Act"

Regina Wank, dpa | Andrea Gillhuber,

What happens to my device data?

Despite warnings from large companies, the EU has agreed on the "Data Act". The aim is to make better use of data from all kinds of devices, from coffee machines to wind turbines. Not everyone is happy with the planned regulations.

© Alterfalter/stock.adobe.com

Brussels (dpa) - The fridge, the car, the vacuum cleaner - data is now collected in almost every modern appliance. But until now, it has been unclear who can access and use this data. The EU now wants to crack down with its "Data Act" - but there is criticism from all sides.

What exactly was decided

Representatives of the European Parliament and EU member states agreed on a data law on Wednesday night. Until now, it has often been unclear who is allowed to do what with the data that is generated when using a dishwasher or a machine tool with internet access, for example. Manufacturers have often simply granted themselves rights to use all the data generated.

The Data Act is now intended to give both individuals and companies more control over their data: Users of networked devices are to be able to access its data in future and also pass it on to third parties. For example, a car owner could in future decide to share certain data with their insurance company. Large cloud providers such as Amazon Web Services, Microsoft and Google will now be obliged to prevent illegal access to data and make it easier to switch providers.

At the same time, however, data trading and cross-data usage are to be boosted and new business areas opened up. In exceptional cases, such as forest fires or flood disasters, authorities should also be able to access data held by the private sector. The "Data Act" still has to be formally approved by the EU Parliament and the Council of Member States.

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Which data is affected

A large number of devices that we use in everyday life are now networked locally or via the internet. This includes coffee machines, light bulbs, robot vacuum cleaners and the Thermomix, as well as fitness wristbands and televisions. The "smart" devices can often be controlled by cell phone. They are in regular contact with the manufacturer, for example to call up the maintenance status or updates. The device often sends information to a cloud, where the data is processed or used as the basis for other services, as the Federal Office for Information Security explains. However, it is not just about household appliances, but also about airplanes, cars, wind turbines and combine harvesters.

What this means for consumers

Consumers will probably not be subject to any obligations for the time being. However, the hope is that the new law could, for example, make customer service or the repair of certain appliances cheaper. Consumer advocates are nevertheless critical of the law. The compromise that has now been reached is disappointing, said Ramona Pop, head of the Federation of German Consumer Organizations. It remains unclear how consumers will be protected if they decide to pass on their data. "The consequences of voluntarily sharing data are difficult to foresee. Companies could exploit this to take advantage of people or create false incentives."

The European consumer protection organization Beuc sees a "missed opportunity": the Data Act opens up too many exceptions for companies. They could prevent access to data and its disclosure, meaning that consumers would continue to have little control.

Companies fear too much intervention

Companies in particular are now being held accountable in terms of transparency and data control. The "Data Act" represents a massive encroachment on the previously well-functioning freedom of contract in data exchange between companies, criticized the mechanical engineering association VDMA. Although the Data Act now also regulates the protection of trade secrets, this does not go far enough for many. "In particular, it must be avoided that the obligation to share data results in trade secrets falling into the hands of competitors or countries that are less friendly to us," said Bitkom President Ralf Wintergerst.

The industry association BDI is also critical of the law, as everything from smart heating thermostats to airplanes will be treated equally: "There is a risk that neither manufacturers nor potential users will benefit from the EU Data Act," said Iris Plöger from the BDI's executive board. "Companies could now be inclined to realign their data strategy in a new and restrictive way, which could lead to less available data and thus run counter to the aim of the Data Act," said Michael Kraus from the commercial law firm CMS.

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