Achieving clarity on the EU Data Act

On Tuesday, 14 March, the European Parliament (EP) confirmed the Rapporteur’s mandate and the EP’s position on the EU Data Act Regulation negotiations with the Council of the European Union. During these trilogue negotiations, the priority for EU decision-makers should be to achieve clarity on the remaining outstanding concerns raised by industry stakeholders across all sectors.

News
14 Mar 2023
Digital
Achieving clarity on the EU Data Act

On Tuesday, 14 March, the European Parliament (EP) confirmed the Rapporteur’s mandate and the EP’s position on the EU Data Act Regulation negotiations with the Council of the European Union. During these trilogue negotiations, the priority for EU decision-makers should be to achieve clarity on the remaining outstanding concerns raised by industry stakeholders across all sectors.

These include:

  • B2B data sharing: ensure the effective protection of trade secrets, clarify the definition of the ‘data holder’ and the scope of data captured, and guarantee that users can benefit from gatekeeper services linked to new user access rights.

  • Cloud switching and interoperability: evaluate and clarify the notion of ‘functional equivalence’ to clearly reflect the realities, roles and responsibilities of various actors in the process, as well as the importance of contractual freedom by ensuring that termination and notice periods account for technical and commercial realities.

  • International data transfers of non-personal data: avoid legal fragmentation and strict data localisation requirements and ensure provisions reflect the varying levels of risk presented by different types of data.

The Commission’s aspirations for a thriving data economy can only be achieved through a proper understanding of the impact of corresponding rules. Co-legislators must focus on quality and not speed to avoid introducing unintended obstacles for the success of Europe’s data economy.

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Digital Omnibus: a strong first step, but more room for harmonisation

The European Commission’s newly introduced Digital Omnibus package is a good starting point for the EU’s digital simplification. Measures such as adjusting the timeline for the application of high-risk AI rules and a reinforced role for the European AI Office are tangible improvements that will give businesses more certainty about how and when they need to meet their compliance obligations. Similarly, the Commission’s launch of a Digital Fitness Check to stress test the digital rulebook and a Data Union Strategy to unlock high-quality data for AI development are important steps. 

However, in certain areas the Commission’s proposal does not go far enough, especially in the harmonisation of cybersecurity obligations. A single entry point for incident reporting helps, but duplication and fragmentation persist across the Network and Information Security Systems Directive 2, the Cyber Resilience Act, the Digital Operational Resilience Act and the General Data Protection Regulation. To cut costs for businesses while raising cyber resilience, the Omnibus should also: 

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  • Align certification and conformity assessments to avoid double audits 

Lessons from other Omnibus initiatives underscore the need for the co-legislators to take swift action and ensure reliable political support behind the Commission’s competitiveness agenda. The stakes for the Digital Omnibus are Single Market-wide. Manufacturers, healthcare and life sciences, financial services, mobility, energy and retail all rely on digital technologies and all face unnecessary burdens from overlapping digital rules. Targeted simplification that reduces duplication and clarifies enforcement promises to accelerate AI adoption, bolster cyber resilience and free resources for investment and jobs across Europe. 

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