Search
Contact
14.03.2022 | KPMG Law Insights

The EU Data Act – Promising Approach or Further Obstacles?

The new EU Data Act is just around the corner. Promising approach or further impediments? We have already had a look at the design.

The regulation of digitization and data use is gaining new momentum. On February 23, 2022, the European Commission is expected to present the final draft of the Data Act, also known as the “Regulation of the European Parliament and of the Council on ensuring fairness in the allocation of value across the data economy” (“Data Act”).
We have already taken a look at the draft, which has not been officially published.

The Data Act is one of the European Commission’s many legislative initiatives as part of its data strategy aimed at improving fair access to and use of data. In this way, the European single market for data is to be strengthened across all sectors. Unlike the GDPR, the focus here is not on personal data, but on data in the true sense and thus on all digital representations of actions, facts or information.

The addressees are all companies active in the EU that collect data, process it, use it in their products or offer related services. This means that almost all companies that use data in some way for business purposes fall within its scope. Only micro and small enterprises are explicitly excluded.
Here are the main points:

  • Data Access By Default: Products and services must be designed to provide users with easy access to the data generated by their use.
  • Right of access to data: Companies are obliged to provide “users” (individuals or organizations) with access to the data they have helped to create. The idea is to provide access “in real time” and free of charge.
  • Improved interoperability: Users should be able to switch between different providers easily and free of charge.
  • Gatekeepers: So-called gatekeepers (providers of large online platforms) may not ask users to share their data with or receive data from gatekeepers. The term gatekeeper is defined in this context by the separate Digital Markets Act.
  • Sanctions: Enforcement of the Data Act is the responsibility of the authorities of the member states. In this context, violations are to be sanctioned, with any sanction requirements to be determined by the member states at the national level. It is expected, however, that the data protection authorities will also be able to impose sanctions for certain violations in accordance with the fine provisions of the GDPR.

 

Outlook

The target direction is correct. To boost the data economy in Europe, it is essential that the commercial use of machine data is opened up to the market and accompanied by clear rules. The approaches to create a certain interoperability is also very useful. However, many practical aspects are open.

The obligation to share self-generated data is a clear encroachment on contractual freedom. A close examination of proportionality is appropriate here. It should also be borne in mind that such a sharing obligation naturally lowers the willingness to invest in generating high-quality data.

High-value data are valuable trade secrets in many areas, and the draft so far contains only rudimentary approaches to protection. Although shared data may not be used for the development of competing products, it is also unclear how compliance with this obligation is to be ensured.

It remains exciting to see what content will ultimately make it into the release in just under two weeks. One thing is certain: the Data Act will result in numerous obligations for digital companies and will require extensive process adjustments in the long term.

Explore #more

22.01.2025 | KPMG Law Insights

The EU packaging regulation sets strict requirements for packaging

The EU has adopted the Packaging Regulation. After the European Parliament adopted the Commission’s draft on April 24, 2024, the EU member states also approved…

09.01.2025 | In the media

KPMG Law strengthens Legal Transformation Managed Services and Legal Corporate Services with two new senior managers

On January 1, KPMG Law strengthened its Transformation Managed Services practice with Jana Sichelschmidt and its Corporate Services practice with Dr. Michaela Lenk. Both are…

06.01.2025 | Deal Notifications

KPMG Law advises on the sale of Käppler & Pausch GmbH

Gabriel Pausch, the co-founder and main shareholder of Käppler & Pausch GmbH, a system supplier for metal assemblies as well as metal and sheet metal…

03.01.2025 | In the media

Interview in Betrieb on the EU money laundering package and its impact

The EU anti-money laundering package harmonizes anti-money laundering and counter-terrorism rules in Europe and introduces new measures such as cash limits of €10,000, identification requirements…

02.01.2025 | In the media

KPMG Law Statement in eMagazin Immobilienanwälte: Creativity meets law in trademark protection

Four Frankfurt, Elbtower, Vonovia: real estate projects and companies are backed by constructs worth millions or even billions. In order to stand out from the…

20.12.2024 | Deal Notifications

KPMG and KPMG Law supported the sale of circular Informationssysteme to the teccle group

Together with the corporate finance/M&A advisors of KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG), KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) advised the shareholders of circular Informationssysteme GmbH (circular)…

19.12.2024 | Press releases

KPMG Law defends Federal Motor Transport Authority against claim for damages in connection with the emissions scandal

The state is not liable to vehicle purchasers for damages. KPMG Law has defended the Federal Motor Transport Authority (KBA) against a civil plaintiff’s state…

18.12.2024 | KPMG Law Insights, KPMG Law Insights

MiCAR – What the new EU regulation means for crypto service providers and issuers

An EU regulation will soon come into force that will regulate crypto assets uniformly throughout Europe. It contains significant new obligations for issuers and crypto…

16.12.2024 | Deal Notifications

KPMG Law advises CERTANIA Holding GmbH on the acquisition of RASG Holdco Ltd.

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) has provided legal advice to CERTANIA Holding GmbH, a platform of the Munich-based PE firm Greenpeak Partners, on the…

04.12.2024 | Deal Notifications

KPMG Law and KPMG advises Brain Biotech AG on license agreements and monetization of license rights

KPMG Law Rechtsanwaltsgesellschaft mbH and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Brain Biotech AG on the monetization of licensing rights with Royalty Pharma and the conclusion…

Contact

Francois Heynike, LL.M. (Stellenbosch)

Partner
Head of Technology Law

THE SQUAIRE Am Flughafen
60549 Frankfurt am Main

Tel.: +49-69-951195770
fheynike@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll