In today’s digital economy, data is often compared to oil—fueling innovation, creating value, and driving growth. The more data businesses can access, the more potential they have to innovate. However, as the role of data becomes increasingly central, so do the laws and regulations governing its use. With the introduction of the European Data Strategy, businesses must understand the new legal landscape and how it impacts their operations.
The European Data Strategy: A Global Standard
The European Union has solidified its position as a global leader in data protection and governance, first with the GDPR, and now with a series of new regulations aimed at facilitating the free flow of non-personal data. Two key pieces of legislation are shaping this next chapter: the Data Governance Act and the Data Act.
The Data Governance Act: Laying the Foundations
Effective since September 2023, the Data Governance Act creates a framework for the voluntary sharing, reuse, and transfer of specific categories of public-sector data. This data can now flow across nationally certified platforms, enabling industries such as health, energy, and transport to access valuable insights. Notably, organizations that altruistically share their data are required to register, providing a level of transparency and accountability.
The Data Act: Harmonizing Access and Use
Set to come into force in September 2025, the Data Act takes data governance to the next level by standardizing how businesses access and use non-personal data. In particular, the Data Act focuses on data generated by Internet-connected devices—critical for after-market services and value-added offerings. Companies holding such data must make it available on fair, reasonable, and non-discriminatory (FRAND) terms. While trade secrets may be protected under certain conditions, data holders cannot refuse access altogether.
However, businesses should be aware that FRAND licenses may provide a legal pathway for opting out of data sharing in specific cases. If a company risks economic damage, transfer to jurisdictions with weaker protections, or reverse-engineering by competitors, they may seek to limit access. As the implementation date approaches, it is essential for companies to audit their data agreements and ensure compliance.
Data Rights in Financial Services: A Shifting Landscape
Data rights in the financial sector are also undergoing significant transformation. Currently, businesses can enforce data rights when data is copyrighted, trademarked, or patented. However, the upcoming Financial Information Data Access (FiDA) proposal is set to change this dynamic, nullifying existing database-access rights. FiDA will allow customers to authorize third parties to access their data, which is held by financial institutions. This shift demands careful planning and strategic adjustments from businesses operating in the financial sector.
Unlocking the Value of Data Sharing
The European Commission estimates that 80% of industrial data remains unused—a vast resource waiting to be tapped. The European Data Strategy aims to unlock this potential, encouraging businesses to license and share data in ways that create value without depleting the original owner’s interests.
More data, when shared strategically, can benefit multiple parties. For example, the financial services sector is already seeing the advantages of collective data sharing, as organizations like the American Banking Association combine data to drive innovation and improve services. The new rules under the European Data Strategy will open even more opportunities for businesses to capitalize on data sharing, ensuring they stay ahead of the competition.
How Aliant Can Help Your Business Thrive in the Data-Driven Economy
At Aliant, we understand the complexities of international data laws and are well-positioned to help your business navigate these changes. Our legal team can assist in reviewing your current data practices, ensuring that your agreements align with the upcoming requirements of the Data Act. By proactively addressing potential challenges, we help businesses minimize risk and maintain a competitive edge.
As the digital economy continues to evolve, staying ahead of regulatory changes isn’t just a legal requirement—it’s a competitive advantage. Let Aliant guide you through these changes and help you harness the full potential of the European Data Strategy.
FOLLOW US ON LINKEDIN
SEE MORE ALIANT INSIGHTS