The draft legislation, adopted on Tuesday 14 March, would contribute to the development of new services, in particular in artificial intelligence where huge amounts of data are needed for algorithm training. It can also lead to better prices for after-sales services and repairs of connected devices.

The volume of data generated by humans and machines is increasing exponentially and becoming a critical factor for innovation by businesses and by public authorities (e.g. shaping of smart cities). This kind of data is said to have become “the new oil”.

The data act establishes common rules governing the sharing of data generated by the use of connected products or related services (e.g. the internet of things, industrial machines) to ensure fairness in data sharing contracts.

80% of data not used

MEPs adopted measures to allow users access to the data they generate, as 80% of industrial data collected are never used, according to the European Commission. They also want to ensure contractual agreements are at the centre of business-to-business relationships.

Companies would be able decide what data can be shared, and the manufacturer could choose not to make certain data available “by design”. When companies draft their data-sharing contracts, the law will rebalance the negotiation power in favour of SMEs, by shielding them from unfair contractual terms imposed by companies in a significantly stronger bargaining position.

Protecting trade secrets and avoiding…