EU Data Act: More control or more risk for trade secrets?
EU Data Act: More control or more risk for trade secrets?
Digitalization
Quality assurance
QA strategy
Share Article on:
Connected devices generate enormous amounts of data. The EU "Data Act" is intended to regulate who can access this data while also making economic potentials usable. Implementation could increase the EU GDP by 270 billion euros by 2028. However, companies face complex obligations and risks.
Connected devices generate enormous amounts of data. The EU "Data Act" is intended to regulate who can access this data while also making economic potentials usable. Implementation could increase the EU GDP by 270 billion euros by 2028. However, companies face complex obligations and risks.
Data is the raw material of the digital economy. However, it has often been unclear who is allowed to use and control the huge amounts of data collected by smart devices (refrigerators, industrial systems, cars, fitness bands).
The 'Data Act' aims to clarify this gray area. The EU Commission proposed the law in February 2022 to define access and sharing of data that has previously been primarily reserved for manufacturers. The new law allows consumers to voluntarily share their data with third parties, which theoretically can bring advantages such as cheaper repairs or spare parts. Additionally, the Data Act aims to facilitate switching between cloud service providers to promote competition and prevent lock-in to a single provider.
Data is the raw material of the digital economy. However, it has often been unclear who is allowed to use and control the huge amounts of data collected by smart devices (refrigerators, industrial systems, cars, fitness bands).
The 'Data Act' aims to clarify this gray area. The EU Commission proposed the law in February 2022 to define access and sharing of data that has previously been primarily reserved for manufacturers. The new law allows consumers to voluntarily share their data with third parties, which theoretically can bring advantages such as cheaper repairs or spare parts. Additionally, the Data Act aims to facilitate switching between cloud service providers to promote competition and prevent lock-in to a single provider.
New Obligations for Companies
For companies, these new rules primarily mean an increased obligation regarding transparency and data control.
The industrial association VDMA criticizes the “Data Act” as a massive interference in the existing freedom of contract regarding data exchange between companies. Although the law regulates the protection of trade secrets, many voices believe that the regulations do not go far enough. Bitkom President Ralf Wintergerst emphasized the necessity to prevent business secrets from reaching competitors or third parties through data sharing. The criticism from the industrial association also concerns the equal treatment of devices, from smart heating thermostats to airplanes. This raises concerns that the Act does not really benefit manufacturers or potential users.
We see here the necessity for a competent solution to ensure compliance.
New Obligations for Companies
For companies, these new rules primarily mean an increased obligation regarding transparency and data control.
The industrial association VDMA criticizes the “Data Act” as a massive interference in the existing freedom of contract regarding data exchange between companies. Although the law regulates the protection of trade secrets, many voices believe that the regulations do not go far enough. Bitkom President Ralf Wintergerst emphasized the necessity to prevent business secrets from reaching competitors or third parties through data sharing. The criticism from the industrial association also concerns the equal treatment of devices, from smart heating thermostats to airplanes. This raises concerns that the Act does not really benefit manufacturers or potential users.
We see here the necessity for a competent solution to ensure compliance.
Strategically managing opportunities and risks
The 'Data Act' is expected to come into force in 2025. It requires companies to proactively adjust their processes and redefine their data strategy. On the one hand, the law could promote data exchange between businesses and the public sector. On the other hand, consumer advocates warn of gaps in the protection of sensitive data if consumers choose to share it.
For us, the solution lies in strategic preparation and prevention: We help you leverage the new transparency and control obligations not as a burden but as an opportunity for clear data governance.
Talk to us about the compliant design of your data strategy and safeguard your trade secrets. Contact us for strategic consulting.
Strategically managing opportunities and risks
The 'Data Act' is expected to come into force in 2025. It requires companies to proactively adjust their processes and redefine their data strategy. On the one hand, the law could promote data exchange between businesses and the public sector. On the other hand, consumer advocates warn of gaps in the protection of sensitive data if consumers choose to share it.
For us, the solution lies in strategic preparation and prevention: We help you leverage the new transparency and control obligations not as a burden but as an opportunity for clear data governance.
Talk to us about the compliant design of your data strategy and safeguard your trade secrets. Contact us for strategic consulting.
Similar CASES
Similar CASES
