EU Data Act Starts to Apply to Connected Devices and Cloud Services

The European Commission said the Data Act gives consumers and business users control over data generated by their connected devices while opening opportunities for smaller businesses to offer repair, maintenance and other aftermarket services using that data.

What the rules require

Users of connected products and related services can now access, use and share the raw data those products generate, including with third parties of their choice. Manufacturers must design connected products placed on the market after 12 September 2026 so that data is accessible by default. The Act also prohibits unfair contractual terms on data access and use imposed unilaterally on another business, and sets out when public bodies may request data in exceptional situations.

Providers of data processing services must remove obstacles that prevent customers switching to another provider or using several providers in parallel, including contractual, commercial and technical barriers. Switching charges are being phased out under the regulation. The Commission has also published guidance on the sharing of vehicle data, aimed at better repair and maintenance, car sharing and mobility services.

Who is affected

The Data Act applies to manufacturers of connected products and providers of related services placed on the EU market, data holders, cloud and other data processing service providers, and businesses that receive data, whether or not they are established in the EU. Contracts for data sharing and cloud services may need to be reviewed against the new requirements.

What happens next

The Commission plans to set up a Data Act legal helpdesk for companies, to publish guidance on protecting trade secrets under the new access rights, and to issue model contractual terms for data sharing and standard clauses for cloud contracts. It will also adopt a Data Union Strategy to further simplify the EU data framework. Enforcement will be carried out by authorities designated by each Member State.

Sources

• European Commission press corner: EU Data Act gives users control over data from connected devices
• EUR-Lex: Regulation (EU) 2023/2854 (Data Act)