European Data Act Enters Into Force, Putting in Place New Rules for a Fair and Innovative Data Economy

February 2024
Region: Europe

The rapid growth of connected devices in the European market has led to an increase in data generation, offering significant potential for innovation and competitiveness in the EU. Responding to this, the European Commission (EC) came forward with its policy recommendation to harmonise rules on fair access to and use of data. The Data Act entered into force on 11 January 2024, after lengthy EU-level negotiations. The Data Act will become applicable on 12 September 2025, except for certain provisions that will be implemented at a later date.

The act aligns with the EU’s Digital Decade’s goal of advancing digital transformation, and it is the second main legislative initiative of the European Strategy For Data of February 2020. The Data Act is closely interlinked with the Data Governance Act. While the Data Governance Act creates the processes and structures to facilitate data sharing by companies, individuals and the public sector, the EU Data Act clarifies who can create value from data and under which conditions. Together, these acts will facilitate reliable and secure access to data, fostering its use in key economic sectors and areas of public interest.

It is anticipated that the Data Act will significantly impact EU businesses, requiring thorough preparation. This client alert reviews and analyses the Data Act Regulation as adopted, emphasising its importance in future EU policy discussions. If the Data Act is of relevance for your organisation, please do not hesitate to reach out to us.