With the EU Data Act agreed, some IT contractors will now need to act

Some Britons might feel Brexit means that they no longer need to care for being outside the club, but the freshly-struck EU Data Act by the European Union, which grants users greater control over their data, appears to hold significant implications for contractors in the UK.

What is the EU Data Act?

Put simply, the bill aims to regulate who can access and share data generated by connected machines and devices, both at work and at home, writes Mel Hzeg of law firm Gerrish Legal.

The act is part of the EU's wider "European Strategy for Data" and aims to facilitate data-sharing and use/reuse across all sectors by setting standards at an EU-wide level. It also seeks to remove barriers to the development of a sustainable data economy and make the EU a leader in the data-driven society. 

Furthermore, the European Commission’s hope is that the wide scale access and availability of industrial data will drive new markets, business models and use-cases for organisations in the EU. What will be particularly interesting is how the Data Act gets applied to companies that are data-scraping -- the act of using algorithms to scan the internet for data and then applying that to machine learning and AI models. 

So what are the EU Data Act’s implications for contractors? 

The EU's data control agreement could have several implications for technology contractors working as website administrators, cloud providers and data protection officers for EU companies in the UK.

Firstly, they must ensure compliance with the EU's General Data Protection Regulation (EU GDPR), as the UK has recognised the adequacy of its data protection regulations. Compliance with data protection requirements will become increasingly important to maintain business relationships with EU companies and ensure the uninterrupted flow of personal data. 

An important part of the EU Data Act is that it aims to enable the use of privately held data by national and EU public sector bodies in cases of exceptional data need. Contractors may need to consider the impact of this provision on their data-sharing practices and be prepared to provide access to data when required by public sector entities. 

The act also aims to improve switching between cloud and edge services. Contractors offering cloud or edge services may need to assess how the act's provisions affect their service offerings and ensure compliance with any requirements related to data transfer, interoperability, or access rights.

The act also introduces safeguards against unlawful data transfer without notification by cloud service providers. Contractors involved in data transfers, particularly those operating within cloud service environments, may need to review their data transfer practices and implement appropriate safeguards to comply with the act's provisions. 

Additionally, the EU Data Act aims to safeguard against unlawful data transfer without notification by cloud service providers. This implies that British individuals or organisations responsible for servers based in the EU would need to ensure compliance with the act's provisions regarding data transfer, particularly when utilising cloud services. They may be required to notify and adhere to specific rules to prevent any unauthorised or unlawful transfer of data.

Does the Data Act benefit UK IT contractors as consumers of EU digital services?

The EU Data Act is designed to enhance the availability and use of data in accordance with EU rules and values. As consumers of EU digital services, contractors can benefit from the EU Data Act in the following ways: 

Increased legal certainty

The act provides measures to increase legal certainty for companies and consumers regarding the use of data and under which conditions it can be used.

This clarity allows contractors to understand their rights and obligations when utilising data generated by EU digital services. 

Fair distribution of data right

The act addresses the issue of unclear data ownership and rights generated by Internet of Things (IoT) devices, ranging from aircraft turbines to washing machines. It ensures that users, including professionals and consumers, have clearer rights over the data they generate using IoT objects. This fair distribution of data rights promotes digitisation and value creation. 

Facilitated data transfer

The Data Act aims to make it easier for contractors to transfer data between service providers. By providing harmonised rules on fair access to and use of data, the act encourages data-sharing and collaboration, enabling contractors to access the data they need more efficiently. 

Incentives for data generation

The act includes incentives for manufacturers to invest in high-quality data generation. By encouraging manufacturers to design products that facilitate data utilisation, contractors can benefit from improved data quality and accessibility. 

Consistency in data access rights

The act promotes consistency in data access rights by ensuring that rules developed for specific situations align with its provisions. Contractors can rely on consistent data access rights, leading to more predictable and streamlined processes when accessing and using data. 

In summary… 

The EU Data Act is a significant piece of legislation that aligns with the EU's data strategy and supports initiatives such as European Data Spaces, antitrust reforms, and standards development.

While it aims to promote data sharing and interoperability, it may face resistance and implementation challenges, especially regarding technical standards and data portability. Overall, we believe the act represents a comprehensive effort by the EU to regulate and foster the data economy, but it does hold potential implications for businesses, consumers, and the digital ecosystem as a whole.