EU Data Act Nears: Smart Devices Share Data

The European Union’s new Data Act takes effect on September 12, 2025, mandating data sharing from smart devices by manufacturers with users.

What are Smart Devices and What Data Do They Collect?

Smart devices, also known as connected products, are now ubiquitous. They appear in cars, home appliances, and health equipment. You find them in agricultural machinery and even medical instruments. These devices collect data during their use. This includes information about users, their operations, and their environment. Some data is already user-accessible. For example, a smartwatch shows heart rate or steps taken. Yet, these tools often gather much more information. They record GPS coordinates, timestamps, or data collection frequency. An MRI machine can measure temperature, noise levels, or magnetic fields. Previously, only manufacturers received these crucial data points.

How to Access Your Device Data?

“The Data Act stipulates a key change,” states Zoltán Tarján. He is a senior lawyer at Jalsovszky Law Firm. “From September 12, 2025, manufacturers must design products for automatic data access.” This direct access must be available to users. If direct access is not possible, users can request data release. They can also ask for data transfer to a third party. At the time of purchase, manufacturers must provide detailed information. This includes what data the product collects. It also explains how to access it. Consumers will know exactly what information an device generates. This includes data not highlighted in advertisements.

Are There Limits to Data Sharing?

The regulation includes certain specific limitations. Data sharing can be legitimately refused. Manufacturers must prove trade secret infringement. This might involve revealing a proprietary algorithm. Manufacturers can also charge a fee for data access. This applies when a corporate client requests the data. The manufacturer can set conditions for data usage. These conditions must always be fair. An unfair condition, for instance, would free the manufacturer from all liability.

Preparing for the Data Act

Manufacturers need extensive preparation for the Data Act. This extends beyond building data sharing systems. Legal aspects demand careful attention. They must create new, detailed information documents for users. Contracts, including general terms and conditions, require updates. Existing agreements also need thorough review. This ensures they contain no unfair conditions for data access. “Start preparing now,” warns Tarján. “Authorities can sanction non-compliance from autumn 2025.” Initially, warnings are probable. Later, supervisory authorities may impose severe fines. For personal data, NAIH could issue penalties. These can reach twenty million euros, or four percent of the company’s annual global turnover.

Further Implications of the Data Act

The Data Act offers several broader benefits. It promotes interoperability standards for data sharing across sectors. This helps businesses switch between data processing service providers more easily. It also prevents vendor lock-in in cloud services. Additionally, the Act includes specific measures to protect small and medium-sized enterprises (SMEs) from unfair contractual terms. It clarifies who can use and access data for various purposes. The European Commission estimates approximately eighty percent of industrial data currently remains unused. This regulation aims to unlock that value. It could generate an additional 270 billion euros in European GDP by 2028. This fosters innovation and economic growth throughout the EU digital economy.