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Data regulation: member states agree on fair access to and fair use of data

In order to make the EU a pioneer in our data-driven society, the representatives of the member states (Coreper) reached a common position or mandate allowing the Council to negotiate with the European Parliament the proposed regulation on harmonized rules for fair access to and fair use of data (Data Regulation).

Council of the European Union March 24, 2023

News press release

News press release

Today's agreement will facilitate the digital transformation of our societies and economies. The Data Regulation will unlock the economic and societal potential of data and technologies in line with EU rules and values. It will contribute to a single market in which data can circulate freely within the EU and across sectors, for the benefit of businesses, researchers, public administrations and society at large.

Erik Slottner, Swedish Minister of Public Administration

The data regulation will give both individuals and businesses more control over their data thanks to a strengthened right to portability, easily copying or transferring data from different services, where the data is generated through smart objects, machines and devices. The new regulation will give consumers and businesses more control over what can be done with the data generated by their connected products.

Key points

The regulation proposes new rules on who can use and access data generated in the EU from all economic sectors. The aim is to ensure fairness in the digital environment, foster a competitive data market, create opportunities for data-driven innovation and make data more accessible to all.

The proposal also aims to facilitate switching between data processing service providers, provides safeguards against unlawful data transfers by cloud service providers, and develops interoperability standards for data that can be reused across sectors.

In particular, the Council's common position is consistent with the general thrust of the Commission's proposal on the following points:

  • measures to give users of connected devices, ranging from smart home appliances to smart industrial machines, access to the data they generate, whereas today such access is often reserved exclusively for manufacturers

  • measures to prevent abuse of contractual imbalances in data sharing agreements due to unfair contract terms imposed by a party with a much stronger bargaining position

  • means for public authorities to access and use data held by the private sector when necessary in exceptional circumstances, particularly in the event of a general emergency, such as floods and forest fires, or to carry out a legal mandate when data are not otherwise available

  • new rules that allow customers to effectively switch between different cloud data processing service providers and provide safeguards against unlawful data transfers

Main changes from the Commission proposal

The Council's text amends several parts of the Commission's proposal, including the following:

  • A clearer definition of the scope of the regulation, particularly with respect to data on the Internet of Things (IoT), focusing more on the functionalities of the data collected by connected products rather than on the products themselves

  • some clarification on the interaction between the Data Regulation and existing horizontal and sectoral legislation, such as the Data Governance Regulation and the General Data Protection Regulation (AVG)

  • the protection of trade secrets and intellectual property rights, combined with appropriate safeguards against misuse

  • additional guidance regarding reasonable compensation for making the data available and dispute resolution mechanisms

  • some fine-tuning regarding requests from government agencies to share data based on exceptional need

  • clearer and more broadly applicable provisions regarding effective switching between data processing services

Next steps

The agreement on the Council's common position will allow the Swedish Presidency to enter into negotiations with the European Parliament ("trialogues") on the final regulation.

Background

After the data governance regulation adopted by Council and Parliament in 2022, the data regulation is the second major legislative initiative under the Commission's February 2020 European data strategy, which aims to make the EU a pioneer in our data-driven society.

Where the data governance regulation creates the processes and structures to facilitate data sharing by businesses, individuals and the public sector, the data regulation clarifies who can create value from data and under what conditions. This is an important digital principle that will help create a robust and fair data economy and guide the EU's digital transformation up to 2030. It will lead to new, innovative services and more competitive prices for aftermarket services and repairs of connected objects ("Internet of Things"/IoT).

In its conclusions of March 25, 2021, the European Council emphasized the importance of digital transformation for EU growth, prosperity, security and competitiveness, and for our social well-being. In light of these ambitions and challenges, the Commission proposed measures for a fair and innovative data economy (Data Regulation) on February 23, 2022, as a follow-up to its February 2020 Communication on the European Data Strategy.

Publications

Proposal for a Regulation of the European Parliament and of the Council on harmonized rules on fair access to and fair use of data (Data Regulation), Feb. 23, 2022

Commission staff working paper on common European data spaces, Feb. 23, 2022

A European data strategy - European Commission communication, Feb. 19, 2020

Resources

  1. Data governance regulation, May 30, 2022

    https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022R0868&qid=1678708072956

  2. Factsheet on the European data strategy (European Commission)

    https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/europe-fit-digital-age/european-data-strategy_en

  3. Database Directive, March 11, 1996

    https://eur-lex.europa.eu/legal content/EN/TXT/?uri=CELEX%3A01996L0009-20190606

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