Data Act

The Regulation on harmonised rules on fair access to and use of data — also known as the Data Act — entered into force on 11 January 2024 and into application on 12 September 2025. The Act is a key pillar of the European data strategy and it will make a significant contribution to the Digital Decade's objective of advancing digital transformation. The Data Act explained provides more in depth explanations.

The Data Act is designed to empower users — both consumers and businesses — by giving them greater control over the data generated by their connected devices, such as cars, smart TVs, and industrial machinery. It lays the foundation for a fair, innovative, and competitive European data economy. With this aim, the Data Act:

• Ensures that connected devices on the EU market are designed to allow data sharing
• Gives consumers the possibility to choose more services, without having to rely on the manufacturer of the device
• Gives business users in industries like manufacturing or agriculture access to data about the performance of industrial equipment opening up opportunities to enhance efficiency and optimise operations
• Allows consumers to easily transfer data and switch between cloud providers
• Prohibits unfair contracts that could prevent data-sharing

The Data Act is a cross-sectoral piece of legislation (i.e. it lays out principles and guidelines that apply to all sectors). It does not modify existing data access obligations, however any forthcoming legislation should align with its principles.

The Data Act makes more data available for the benefit of companies, citizens and public administrations through a set of measures such as:

Increasing Legal certainty

Companies and consumers engaged in data generation, particularly within the Internet-of-Things framework, benefit from clear rules on the permissible use of data and the associated conditions, while sustaining incentives for data holders to continue investing in high-quality data generation. The new rules aim to facilitate the seamless transfer of valuable data between data holders and data users while upholding its confidentiality. This will encourage more actors, regardless of their size, to participate in the data economy. The Commission will also develop model contract clauses in order to help market participants draft and negotiate fair data-sharing contracts.

Mitigating the abuse of contractual imbalances

Contractual imbalances impede equitable data sharing. Mitigating them entails safeguarding enterprises from unjust contractual terms imposed by a party wielding a considerably stronger market position.

Public sector access and use of data

Rules enabling public sector bodies to access and use data held by the private sector for specific public interest purposes. For instance, public sector bodies will be able to request data necessary to help them respond quickly and securely to a public emergency, with minimal burden on businesses.

Switching between providers

New rules setting the framework for customers to effectively switch between different providers of data-processing services to unlock the EU cloud market. This will also contribute to an overall framework for efficient data interoperability.

Balance between the interests of data holders and users

A review of certain aspects of the Database Directive, particularly focusing on elucidating the role of the sui generis database right. This right pertains to safeguarding the content of specific databases and extends its application to databases derived from data generated or acquired through Internet of Things (IoT) devices. This will ensure that the balance between the interests of data holders and users is in line with the broader objectives of the EU data policy.

The Data Act is a powerful engine for innovation and new jobs. It will allow the EU to ensure that it is at the forefront of the latest wave of data-driven advancements. Below are some examples of the impact of the new rules on the access and use of data generated by Internet-of-Things devices:

Right to access the data

When acquiring a 'traditional' product, you receive all of its components and accessories. However, in the case of connected devices (specifically within the Internet of Things (IoT)), new data is generated during normal usage. This adds to the product, becoming one of its essential components.The Data Act gives individuals and businesses the right to access the data produced through their utilisation of smart objects, machines and devices.

Cost-effective repair and maintenance of connected products

Users of connected products may choose to share this data with third parties. This will enable aftermarket (e.g. repair) service providers to enhance and innovate their services, fostering fair competition with similar services provided by manufacturers. Consequently, users of connected products, including consumers, farmers, airlines, construction companies or building owners, will have the option to choose more cost-effective repair and maintenance providers (or undertake these tasks themselves), leading to potentially lower prices in the market. This could also extend the lifespan of connected products, thus contributing to the Green Deal objectives.

Access to performance data

The accessibility of data pertaining to the performance of industrial equipment opens up opportunities for enhancing efficiency. Industries such as manufacturing, agriculture and construction can optimise operational cycles, production lines and supply chain management, leveraging machine-learning technologies.

Improving farming

In precision agriculture, the application of IoT analytics to data from interconnected equipment enables farmers to analyse real-time information, including weather conditions, temperature, moisture levels, market prices and GPS signals. This analysis provides valuable insights for optimising and increasing crop yield. The improved understanding of real-time data supports more effective farm planning, assisting farmers in making informed decisions about the allocation of resources.

The Data Act is applicable from 12 September 2025, marking a major step forward in building a fair and innovative European data economy.

Since its adoption, the Commission has actively collaborated with companies of all sizes, industry associations, and civil society to clarify the regulation’s provisions and develop practical tools to support its implementation. This engagement continues beyond the entry into application. Ongoing dialogue with stakeholders ensures that feedback informs future guidance, keeps implementation proportionate, and contributes to the Commission’s broader simplification agenda.

To further support stakeholders, the Commission has already published guidance materials, including frequently asked questions (FAQs) and other resources. In addition, a dedicated Data Act Legal Helpdesk will be launched to provide companies with direct assistance on specific questions related to applying the new rules.