Enhancing Data Access Across Public and Private Realms Through the Data Governance Act
The European Data Governance Act (DGA), a subject of current discussion and negotiation, is set to have a significant impact on the EU's digital economy and data management practices. This provisional agreement, reached by the European Council and the European Parliament, is a major regulatory milestone that aims to unlock the full potential of data as a key economic resource in the EU.
The Center for Data Innovation, an organisation that has issued a statement about the DGA, believes that this act is a positive step for the digital economy. In response to the agreement on the DGA, the Centre's director, Daniel Castro, stated that the DGA is a significant step towards improving data management in Europe.
The key provisions of the DGA focus on facilitating fair and secure data sharing across the EU, balancing user control, business interests, and public interest. Some of the key provisions include user rights to data access and control, fair data sharing terms, public interest access in emergencies, a wide regulation scope, and compliance deadlines.
Users of connected devices, such as IoT devices, will have the right to access the data generated by those devices. Data holders must provide the data promptly in a machine-readable, well-structured format, allowing users or their chosen third parties to use or share their data, thereby enabling greater user empowerment and market competition.
The Act compels fair and transparent terms for data access between users, data holders, and third parties. Data holders can charge only for the costs of making data available but not for the data itself, with exceptions for some cases like SMEs and research organisations where profit margins may be allowed.
Public authorities may request access to private-sector data in exceptional situations such as natural disasters or pandemics to manage crises effectively. Such access is tightly regulated with safeguards to prevent misuse.
The DGA applies widely to data generated by connected products and data-sharing services, including cloud and edge computing, extending across consumers, businesses, and government bodies within the EU digital single market. Most provisions, including user access rights, take effect starting from 12 September 2025, while design rules for new connected products will begin on 12 September 2026.
The potential impact of the DGA on the EU's digital economy includes unlocking data value, enabling new business models, strengthening consumer and user empowerment, supporting public interest use cases, and stimulating market competition. By enabling lawful access and use of data, the Act promotes data-driven innovation and competitive digital services, which can enhance productivity and market rivalry.
The DGA will be instrumental in strengthening the EU's position in the digital economy. However, there are still important reforms needed, such as ensuring organisations can share non-personal data outside the EU. The European Data Innovation Board, a key institutional reform established by the DGA, is intended to help EU policymakers improve data quality and interoperability.
Overall, the European Data Governance Act (within the broader Data Act framework) represents a major regulatory milestone designed to unlock the full potential of data as a key economic resource in the EU, balancing innovation, economic growth, and fundamental rights protections. The Centre for Data Innovation has not specified any specific concerns about the DGA in its statement.
- The European Data Governance Act (DGA) is expected to stimulate innovation in the EU's digital economy by unlocking the potential of data as a key economic resource.
- A significant focus of the DGA is facilitating fair and secure data sharing across the EU, which can enhance market competition.
- The DGA includes provisions to improve data management in Europe, such as user rights to data access and control, and fair data sharing terms.
- AI, finance, and business sectors might benefit from the DGA's provisions, as they can enable new business models and strengthen consumer and user empowerment.
