The European Union’s Data Act is poised to become applicable on September 12, 2025, marking a significant milestone in the regulation of digital data. The new law aims to create a fair and competitive digital economy by granting consumers and businesses greater control over the data generated by their connected devices. It is expected to trigger a major shift in how data is accessed, shared, and monetized across the bloc.
At its core, the Data Act empowers users of connected devices, from smartwatches to industrial machinery, to access the data they generate. It also requires manufacturers to make this data available to third-party services, encouraging a more competitive market for data-driven applications. This could lead to a wave of new services, such as enhanced repair and maintenance apps for smart home appliances, or more personalized insurance options based on vehicle data.
The legislation focuses on business-to-business (B2B) and business-to-consumer (B2C) data relationships. It addresses the imbalance of power that often exists between data holders and data users, particularly in the industrial sector. For example, a farmer will now have the right to access data from their tractor and share it with a different company for a more efficient agricultural service.
Furthermore, the Data Act includes provisions to prevent unfair contractual terms that could restrict data sharing, ensuring that smaller companies can compete with larger ones. It also establishes rules for public sector bodies to access private-sector data in exceptional circumstances, such as a public emergency.
The new law is part of the EU’s broader European strategy for data, which includes the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA). While many businesses have already begun preparing for the change, the full impact of the Data Act will only be seen after its implementation. It’s a bold move to put data back in the hands of its creators, promising to foster innovation and create a more transparent and equitable data economy.
