EU Data Act entered into force

The European Union has has adopted the Data Act, which came into force on January 11, 2024. The Act aims to redefine the rights to access and utilize data generated within the EU across all economic sectors. It is designed to stimulate a competitive and innovative data market by unlocking industrial data and providing legal clarity regarding data usage. The Act enables users to access and share data from connected products with third parties, fostering innovation and aftermarket services. Additionally, public sector bodies will gain the ability to use private sector data during emergencies or legal mandates, and SMEs will be safeguarded against unfair data sharing contract terms. The Data Act also introduces measures to prevent vendor lock-in by enabling customers to switch between cloud providers seamlessly and potentially without cost, thereby boosting competition and choice in the market. This move is expected to reduce costs for businesses and administrations and promote the development of interoperability standards for data-sharing and data processing services, in line with the EU standardisation strategy. The Data Act will become applicable on 12 September 2025, following a 20-month period post-entry into force. This Act complements the Data Governance Act, which has been in effect since September 2023, and is a key component of the Commission’s data strategy, contributing to the 2030 Digital Decade objectives. The Data Governance Act establishes structures to facilitate data sharing and creates Common European data spaces, ensuring control remains with the data-generating companies and individuals. Source: European Data Act enters into force, putting in place new rules for a fair and innovative data economy | Shaping Europe’s digital future