The Data Act – legislation aimed to make sure that data created through the use of smart devices is shared fairly – will enter into force on Friday but some national regulators are not fully equipped yet to enforce the rules.
In 2022, the European Commission proposed the new law, making sure that people using devices ranging from connected cars to smart watches, benefit as more and more machines create huge amounts of data.
Manufacturers of devices must design their products in a way that makes it easy for users to get and share their data under the Act. But there are some exceptions: if sharing data could reveal important business secrets, companies can temporarily stop the sharing.
Several national authorities, including the Dutch competition authority ACM and the Hamburg data protection authority, warned in recent statements that they cannot enforce the rules as they have not yet been empowered as a result of delays in national transpositions of the law.
“After the Senate and the House of Representatives have approved the Dutch Implementation Act, ACM is fully competent. From that moment on, people and companies will also be able to report relevant developments and possible violations to ACM,” the statement said.
Business associations estimated last month that “fewer than half of EU member states have designated or legally empowered national authorities responsible for implementing the rules.”
The Commission said in an earlier statement to Euronews that while the rules apply directly in all EU countries, that “includes provisions requiring national implementation measures – notably on penalties and enforcement.”
“The Commission is working closely with Member States to support a timely and consistent implementation, including through the European Data Innovation Board where these national implementation measures will be discussed,” the spokesperson said.
Breaches of the Act can result in fines of up to €20 million or 4% of the company’s total worldwide annual turnover, whichever is higher.
Companies concerns
Euronews has reported that digital trade groups are worried about uncertainty around the rules due to digital simplification plans announced by EU Tech Commissioner Henna Virkkunen.
The EU executive is currently gathering “insights on where current policies can be simplified or streamlined”, which means that certain provisions of the rules could potentially be watered down in the coming months.
A group of 14 trade groups – including the European Digital SME Alliance and Insurance Europe – signed a letter published on Friday calling upon the European Commission to uphold the rules, “despite pressure to undermine its core provisions.”
The groups claim that the rules give SMEs the ability to benefit from industrial data, “shield them from unfair contractual terms and ensures that data sharing happens on a fair, reasonable and non-discriminatory terms.”
Big Tech companies are calling for changes such as delayed enforcement, which the SME groups claim could derail the rules.
In a response to a question from lawmaker Damian Boeselager (Germany/Greens) earlier this month, EU Tech Commissioner Henna Virkkunen said that she will ensure that the rules will be enforced.
“I remain fully committed to ensuring a smooth and effective rollout of the Data Act in view of its entry into application on 12 September 2025,” Virkkunen said.