Data Act

The EU Data Act became law on 12 September 2025. It’s a major step in Europe’s data strategy and introduces new rights for users, new duties for companies, and new rules for how data is shared.

In practice, the Data Act means: users of connected products and services should have easy access to the data they generate – and be able to share it with third parties if they choose. At the same time, businesses will need to rethink contracts, product design, and processes to stay compliant.

“This Regulation ensures that users of a connected product or related service in the Union can access, in a timely manner, the data generated by the use of that connected product or related service and that those users can use the data, including by sharing them with third parties of their choice.” (Recital 5 Data Act)

What the Data Act Covers

  • Using non-personal data: Data holders (often manufacturers) can only use non-personal data if they have a contract with the user.
  • Sharing data with third parties: Transfers must be contractually regulated – including purpose, fees, protective measures, and confidentiality.
  • Information duties: Before any contract is signed (purchase, lease, rental), users must get clear and understandable information.
     

Who Is Affected?

Most companies that provide connected products or services fall under the Data Act. But there are important exceptions for smaller businesses:

  • Micro and small companies are generally exempt.
  • Medium-sized companies are also exempt if they have been classified as such for less than one year.

That said, there are many nuances. Applicability depends not only on company size, but also on contracts, risks, and how users interact with your products.

Safeguards for Data Holders

The Data Act also recognises the need to protect trade secrets. Data holders can refuse or suspend sharing if:

  • protective measures aren’t agreed or implemented,
  • confidentiality is at risk, or
  • disclosure would likely cause serious economic harm.

Sanctions under the Data Act

Penalties for violating the Data Act are not harmonised across the EU but are set by each member state. What is clear, however, is that they must be effective, proportionate, and dissuasive. In practice, this means they are expected to be on par with GDPR fines – up to 20 million euros or 4 percent of a company’s worldwide annual turnover.

Sanctions may involve significant financial penalties as well as other administrative actions. The exact amount or type of measure will depend on factors such as the nature, seriousness, and duration of the breach, together with any circumstances that may increase or lessen the responsibility.

What Should Companies Do Now?

Blaues Outline-Icon mit einem Dokument und einer Lupe davor.

Check if the Data Act applies to you

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Review and update contracts

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Meet new information obligations

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Align processes with GDPR and trade secret rules

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Set up user and consent management

 

How We Can Help

We support you in:

  • Clarifying whether the Data Act applies to your Business
  • Mapping your data and identifying sensitive areas
  • Distinguishing between personal data and trade Secrets
  • Drafting and adjusting contracts
  • Implementing the right technical, organisational and legal measures
  • Meeting transparency requirements

Contact Us

If you have questions about the Data Act or need support with implementation, please get in touch with our team.

Wiebke Kummer

Wiebke Kummer, Jurist

ppa | Head of Compliance International

Email: wkummer@re-move-this.first-privacy.com

Phone: +49 421 69 66 32-884

FIRST PRIVACY GmbH, Bremen

Cihan Parlar

Cihan Parlar, LL.M. (Tilburg), Lawyer

Managing Director

Email: cparlar@re-move-this.first-privacy.com

Phone: +31 20 211 71 16

FIRST PRIVACY B.V., Amsterdam

Markus Strasser

Mag. iur.

Markus Strasser

Managing Director | Senior Privacy Counsel

Email: mstrasser@re-move-this.first-privacy.com

Phone: +43 662 62 10 04-11

FIRST PRIVACY Austria GmbH, Salzburg

If your inquiry concerns an organization based in Germany, these contacts will help you

Dominik Bleckmann

Dominik Bleckmann, Lawyer

ppa | Head of Compliance

Email: dbleckmann@re-move-this.datenschutz-nord.de

Phone: +49 421 69 66 32-349

datenschutz nord GmbH, Bremen

Markus Schönmann

Markus Schönmann, Lawyer

Head of Compliance | Senior Privacy Counsel

Email: mschoenmann@re-move-this.datenschutz-sued.de

Phone: +49 931 30 49 76-24

datenschutz süd GmbH, Würzburg

FAQ

We have put together answers to the most common questions about the Data Act. If you need further details, please feel free to get in touch with us.