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On November 9, 2023, the European Parliament has adopted the final version of the Data Act, marking a significant milestone in the evolving landscape of digital regulation. The Data Act is part of the European Commission’s broader strategy to shape Europe’s digital future (see our earlier posts here and here).

The widespread use of internet-connected products (the so-called Internet of things or “IoT”) has notably increased the volume and potential value of data for consumers, businesses, and society at large. Recognizing that barriers to data sharing hinder optimal data allocation for societal benefit, led to the drafting of the Data Act. Initially proposed by the European Commission in February 2022, the Data Act is designed to regulate data sharing and usage within the EU.

The Data Act, which applies to both personal and non-personal data, encompasses several key elements designed to foster an efficient, fair, and innovative data economy:

  • It facilitates data sharing, particularly data generated by connected devices and used by related services. This spans all sectors, underscoring the significance of non-personal data sharing for societal and economic benefits;
  • It establishes mechanisms for data transfer and usage rights, with a special focus on cloud service providers and data processing services. This facilitates a more fluid and secure data sharing environment;
  • It introduces interoperability standards to ensure data can be accessed, transferred, and used across different sectors, which is crucial for innovation and competitive markets;
  • It reinforces the right to data portability, allowing users to move their data across different service providers, which enhances user autonomy and promotes competition;
  • It mandates that providers of data processing services, such as cloud and edge services, implement reasonable measures against unauthorized third-party access to non-personal data, thereby fostering trust in data;
  • It aims to balance the availability of data with the protection of trade secrets;
  • It recognizes the need for public sector bodies, the Commission, the European Central Bank or Union bodies to use existing data to respond to public emergencies or in other exceptional cases; and
  • It provides protections against unfair contractual terms that are unilaterally imposed.

These elements collectively aim to enhance data accessibility and utility, protect individual and business interests, and foster a more competitive and innovative digital market in the EU.

The adopted text now needs formal approval by the Council to become law. Once finalized, the Data Act will enter into force on the 20thday following its publication in the Official Journal of the European Union and will apply from 20 to 32 months from the date of entry into force. The timeline for complete enforcement is thus expected to span several years, allowing businesses and stakeholders adequate time to adapt to the new requirements.

As always, we will continue to monitor the developments in this matter and keep you informed of any further updates.

WRITTEN BY

Crowell & Moring
For further information, please contact:

Sari Depreeuw – Partner, Crowell & Moring
sdepreeuw@crowell.com

Sari Depreeuw is a partner in Crowell & Moring’s Brussels office and a member of the firm’s Technology & Brand Protection Group. She focuses on copyright and digital law, with more than 15 years of experience advising and representing a wide range of Belgian, European, and international clients on copyright, neighboring rights, software and database rights, and on all issues relating to the access to, acquisition and use of digital assets.

Sari has in-depth experience working with clients from the media and entertainment, technology, medical services, autonomous vehicles, and digital sectors, including both start-ups and major international companies. She frequently represents clients before the Belgian courts.

Sari is an active member of the Belgian copyright community. She conducted studies for both the European Commission and the Belgian government on the subject of copyright. She is also president of the Belgian Copyright Association, a member of the editorial board of Computerrecht, a peer-reviewed Dutch-Belgian IT journal, and a board member of Jubilee, an artists’ organization. She is a part-time professor at the UCLouvain/Université Saint-Louis Bruxelles, where she teaches intellectual property and media law.

Representative Matters

  • Represented a major Belgian book publisher in litigation concerning the publishing and audiovisual rights attached to a graphic character. 
  • Represented an international software company in a dispute with a software integrator and its licensor, and negotiated a settlement.
  • Represented the Belgian government in a question concerning copyright and competition law before the Court of Justice of the European Union. 
  • Analyzed resale rights in order to define the legal obligations of a well-reputed, international art gallery and adapted contracts as necessary.
  • Audited authors’ and performers’ contracts for a broadcasting organization.

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