On January 11, 2024, the European Union’s Data Act will officially come into force. This groundbreaking legislation, adopted by the Council of the European Union on November 27, 2023, aims to revolutionize access to and use of data. It offers companies, start-ups, and SMEs new opportunities to create value and strengthens the rights of consumers and businesses alike.
After a transition period of 20 months, the Data Act will be directly applicable throughout the EU from September 12, 2025. The regulation is a key building block for advancing the goals enshrined in the German government’s digital strategy: More data use for more innovation.
What does the Data Act regulate?
- Data sharing (B2C and B2B): Companies are required to share data with consumers or other companies upon request in order to promote transparency and innovation.
- Fair conditions for data owners: Clear rules on remuneration for data sharing will be established.
- Protection against unfair contract terms: Contracts in the B2B sector must be fair and balanced.
- Data provision to public authorities (B2G): In exceptional cases, public authorities may access data to address societal challenges.
- Cloud switching: New rules will make it easier to switch between data processing services and promote technical interoperability.
The Data Act is a milestone on the road to a fair and dynamic data economy in Europe. Companies should use the transition period to prepare for the new requirements and recognize the opportunities that better data use will bring.
