EU lawmakers reach deal to boost data sharing

The amount of data generated by businesses, public bodies, and EU citizens is expected to increase five times between 2018 and 2025

Image:
The amount of data generated by businesses, public bodies, and EU citizens is expected to increase five times between 2018 and 2025

The new regulation aims to create a trustworthy environment for the reuse of public-sector data

The EU Parliament and Council has reached an agreement on the Data Governance Act (DGA), in their efforts to create a framework for the sharing of industrial data across the bloc.

The DGA aims to build a trustworthy environment to facilitate the reuse of certain public-sector data that is 'subject to the rights of others'. The data could include trade secrets, personal data and data protected by intellectual property rights in strategic domains, such as health, environment, agriculture, energy, finance, and manufacturing.

Public-sector entities allowing the reuse of data will need to be properly technically equipped to ensure that confidentiality and privacy are fully preserved.

The DGA will also contain new rules for data marketplaces in the form of intermediation services, where private firms can share their data voluntarily. Many companies currently prefer not to share their data for fear of misuse or violation of privacy obligations.

The EU lawmakers write, 'By using these services, companies will be able to share their data without fear of its being misused or of losing their competitive advantage.'

According to the European Council, MEPs ensured during the negotiations that were no loopholes in the new rules that would allow entities in non-EU countries to abuse the scheme.,

MEPs have also secured precise requirements on which services will fall under the new DGA.

A necessary step

The European Commission expects the amount of data generated by businesses, public bodies, and EU citizens will increase five times between 2018 and 2025.

Lawmakers believe the new rules will allow this data to be harnessed and 'pave the way for sectoral European data spaces to benefit society, citizens and companies'.

The final text of the DGA will need to be approved by the European Council and Parliament before it is formally adopted. It will then take 15 months before the regulation comes into force.

"The Data Governance Act is a major milestone that will boost the data-driven economy in Europe in the years to come," said BoĊĦtjan Koritnik, Slovenian Minister for Public Administration, President of the Council.

"By enabling control and creating trust, it will help unlock the potential of vast amounts of data generated by businesses and individuals. This is indispensable for the development of artificial intelligence applications and critical for the EU's global competitiveness in this area. Data-powered innovations will help us address a range of societal challenges and drive economic growth, which is so important for the post-COVID recovery."

Lead MEP Angelika Niebler (EPP, DE) said: "Our goal with the DGA was to set the foundation for a data economy in which people and businesses can trust."

"Data sharing can only flourish if trust and fairness are guaranteed, stimulating new business models and social innovation. Experience has shown that trust - be it trust in privacy or in the confidentiality of valuable business data - is a paramount issue. The Parliament insisted on a clear scope, making sure that the credo of trust is inscribed in the future of Europe's data economy."

Earlier this year, the European Commission adopted revamped data transfer tools that provide more legal and privacy safeguards to enable companies to transfer European users' data securely around the world.