There are 5 months to go until September 12, 2025, when the EU Data Act will be applied.

Have you sold connected products in the EU market? Now is the time to prepare, and it is not just a legal issue.

Yet another EU regulation? No, a strategic issue for the future of the European Union

The Data Act is not just yet another EU regulation that we have to comply with.

The Data Act is a key element within a broader strategic initiative that the European Union has decided to undertake: the European Data Strategy, which aims to make the EU a leader in our data-driven society.

The European Commission designed and implemented this law with the goal of fostering a data economy, and data-driven services economy, by establishing clear rules, in line with EU values, so that all stakeholders feel protected and encouraged to invest in the production and sharing of data and its transformation into added value.

Data generated by connected products is in fact an underutilized resource today. The European Commission has estimated that 80% of the raw data generated by connected products is not used.

The expectation is that this law could create an additional GDP of €270 billion by 2028.

Regulation as a tool to instill trust and remove barriers to data sharing

The regulation introduced by the Data Act is not a limitation, but a tool to overcome it. Today, without regulation, there are barriers to the deployment of connected products and data sharing due to fears, or simply lack of knowledge, about how the data is treated. The Data Act imposes rules that apply to everyone, with the aim of protecting investment, security, trade secrets and other sensitive issues, thus instilling confidence in all stakeholders. This is the key to overcoming the barriers that exist today.

The Data Act is not just a legal matter, but also a technical one and, above all, a strategic one

As a manufacturer of connected products, who is also data holder, the Data Act is not just a subject for legal departments. You must discuss it at two other levels:

1. the technical level, because the Data Act requires adapting your IT systems to meet data sharing obligations and the opportunity to collect compensation;

2. the strategic level, because the Data Act raises a crucial question: "What is our role in the emerging data-driven services economy within the European Union?"

Don't compare the Data Act to GDPR, it leads us off track

Although they both refer to data management, the Data Act has nothing to do with GDPR. The main difference is the purpose for which they were introduced.

The GDPR was basically introduced to protect data. The Data Act, on the other hand, was introduced for the opposite purpose: to circulate data, albeit in a regulated way.

Moreover, while the GDPR establishes rules between two parties, those who handle the data and the party to whom the data relates, the Data Act establishes a 3-party relationship. It introduces the third party on the scene. This is the big novelty: the sharing of data to third parties, upon users’ request.

The consequence is that while GDPR can be handled as a pure regulatory adjustment that does not touch the business model in practice, the Data Act asks us to define a strategy for third-party involvement.

Sharing data with third parties is an element of a broader connected services strategy

As a data holder, sharing raw data with third parties is an element of a broader strategy: your connected services strategy (learn more about this topic in the Learning Center: https://learn.servitly.com/docs/how-to-design-a-connected-services-strategy).

There are two elements to consider.

The role of third parties in your connected services

Indeed, in your connected services strategy a strategic issue is precisely to determine the role of third parties. Do you include them or cut them out? If you include them, what digital tools do you make available to them? What value do you offer to gain their loyalty?

This consideration must first be made for the third parties that make up your value chain, your partners, distributors, installers, technical assistance centers, suppliers of spare parts and consumables, etc. And with the advent of the Data Act, you will have to extend the same consideration for all new parties that will knock on your door with a request to share data.

Extend your services to connected products of other providers

If we turn the viewpoint around, the Data Act offers also an incredible opportunity. As a data holder already providing connected services, you become yourself a third party. At the request of users, you can also receive data from connected products of other providers, and by doing so, you can include them in your service offering. This unlocks previously unimaginable competitive scenarios.

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In conclusion, therefore, it is crucial not to treat Data Act compliance as a minor initiative, to be done only because your are forced to, but to include it in a broader strategy, your connected services strategy.

And if you haven't defined it yet, well, now is the time to do so, before September 12.

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To learn more about the EU Data Act: https://learn.servitly.com/docs/eu-data-act-implementation