The European Commission has proposed new rules that should make it easier to switch between cloud providers of business services.
Thierry Breton, Commissioner for Internal Market, said the proposed Data Act will ensure that industrial data is shared, stored and processed in full respect of European rules.
"It will form the cornerstone of a strong, innovative and sovereign European digital economy,” he said.
"The volume of data is constantly growing, from 33 zettabytes generated in 2018 to 175 zettabytes expected in 2025. It is an untapped potential, 80% of industrial data is never used. The Data Act addresses the legal, economic and technical issues that lead to data being under-used.
"The new rules will make more data available for reuse and are expected to create €270bn of additional GDP by 2028."
The proposal for the Data Act includes:
+ New rules allowing customers to effectively switch between different cloud data-processing services providers and putting in place safeguards against unlawful data transfer.
+ Measures to allow users of connected devices to gain access to data generated by them, which is often exclusively harvested by manufacturers, and to share such data with third parties to provide aftermarket or other data-driven innovative services.
+ Measures to rebalance negotiation power for SMEs by preventing abuse of contractual imbalances in data sharing contracts. The Data Act will shield them from unfair contractual terms imposed by a party with a significantly stronger bargaining position.
The Commission said it will also develop model contractual terms in order to help such companies to draft and negotiate fair data-sharing contracts.
+ Means for public sector bodies to access and use data held by the private sector that is necessary for exceptional circumstances, particularly in case of a public emergency, such as floods and wildfires, or to implement a legal mandate if data are not otherwise available.
+ In addition, the Data Act reviews certain aspects of the Database Directive, which was created in the 1990s to protect investments in the structured presentation of data. Notably, it clarifies that databases containing data from Internet-of-Things (IoT) devices and objects should not be subject to separate legal protection. This will ensure they can be accessed and used.
According to Breton, consumers and businesses will be able to access the data of their device and use it for aftermarket and value-added services, like predictive maintenance.
"By having more information, consumers and users such as farmers, airlines or construction companies will be in a position to take better decisions such as buying higher quality or more sustainable products and services, contributing to the Green Deal objectives," Breton explained.
Margrethe Vestager, Executive Vice-President for a Europe fit for the Digital Age, said: "Data is an essential resource for economic growth, for competitiveness, for innovation, and for job creation.
"In the Data Act, the data we have in mind is typically generated by connected machines or connected devices. That could be a smart watch, it could be a car, or eventually even your coffee machine. These devices generate a huge amount of data in what we call the ‘internet of things’.
"All those sensors that automatically take in information from our environment. A lot of this data is non-personal data, and most of it is currently unused. If used, such data can provide a multitude of possibilities for new products, new services, or they can foster research. But for this to happen, we need to define who has control over such data, and who can use it for what purpose.
"Our data strategy is all about putting such data into productive use, to the benefit of companies and society. The green transition can only happen if we become more energy efficient – and the use of data will help us."
Vestager added that the Data Act will also establish a fairness test for data sharing contracts across the economy. This test will help micro, small and medium-sized enterprises in situations where there are unfair contractual terms are unilaterally imposed on them.
"We have also been looking at the difficulties that private and public customers face when they want to move their data from one cloud service provider to another. The Data Act aims to remove commercial, technical, and contractual obstacles that still prevent customers from switching between cloud services," she stated.