Privacy Laws
The EU Passed Its New Data Act But Why Is No One Happy About It?
By TechDogs Bureau
Updated on Fri, Jun 30, 2023
Forget phones, we’ve moved to smart lights, fans, refrigerators, air conditioners, ovens and more. As a result, they create a ton of data that needs to be protected and encrypted for safe use. #StillASmartWorld
This is what the European Parliament and Council of the EU are aiming for with their new Data Act.
The Act gives end users and businesses in the EU better control and access over the data generated from connected devices, smart objects and smart machines, which includes the option to share it with other parties of their choice. Furthermore, it will help protect them from unlawful data transfers, allow them to move data across different cloud providers and develop interoperability standards.
The Act will also allow public sector bodies to access data held by private companies in case of public emergencies.
The Act was finalized after seven hours of talks between lawmakers, after being proposed last year in a bid to cap the power of US tech giants and gained speed after revelations made by former US intelligence contractor Edward Snowden in 2013.
After the session, EU Commissioner Thierry Breton tweeted, "Tonight's agreement on the Data Act is a milestone in reshaping the digital space … we are on the way of a thriving EU data economy that is innovative and open — on our conditions."
However, this move did not go down well with Big Tech! #ButWhy
They criticized the Data Act saying it would negatively affect data flow and contractual freedoms.
Speaking on the same, Cecilia Bonefeld-Dahl, the Director-General of DIGITALEUROPE, said, "The Data Act will place European industry at a disadvantage by forcing it to give up hard-earned data and restricting contractual freedom, potentially leading to a new wave of de-industrialization and poses risks to our cybersecurity."
DIGITALEUROPE is a leading trade association that aims to digitally transform industries in Europe and has members like Airbus, AMD, Amazon, Apple, Mastercard, Microsoft, Nvidia, Intel, Siemens, Sony, Visa and a whole list of other big names! Furthermore, the organization believes the new agreement fell short of its expectations.
Yet businesses are not the only ones who are unhappy! The Act also states, “Users will be able to share such data with third parties, boosting aftermarket services and innovation. Simultaneously, manufacturers remain incentivised to invest in high-quality data generation while their trade secrets remain protected.”
This means companies can choose not to share data if they label it part of their trade secret. The European Consumer Organisation (BEUC) commented on this, with Deputy Director General Ursula Pachl saying, "The EU institutions have given too much flexibility to companies who can now prevent consumers from sharing data with other service providers on the basis it constitutes a trade secret, for example."
What do you think of the Data Act? Do you think it addresses data sharing concerns or increase them? Let us know in the comments below!
First published on Fri, Jun 30, 2023
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