EU Regulations Target Illicit Data Transfers To Non-EU Countries

According to proposed legislation from the European Commission, Amazon, Microsoft, and other cloud and data processing service providers would be required to include measures to prevent non-EU governments from getting unauthorised access to EU data.

The Data Act, which was published on Wednesday, establishes rights and duties for the use of EU consumer and business data created by smart gadgets, machines, and consumer goods.

This backs with a Reuters storey from earlier in February that the Commission intended to tighten restrictions on data transfers. The draught bill is part of a set of laws aimed at limiting the clout of US IT behemoths and assisting the EU in meeting its digital and environmental goals.

“We want to ensure greater fairness in the allocation of value created by data,” the Commission’s digital chief Margrethe Vestager told a news conference.

“We are buying more and more products that generate data from smartwatches to connected cars and currently it’s mainly the manufacturer of these products who holds and uses the data,” she said.

According to the EU executive, the new laws will free up a massive amount of data for usage, resulting in an additional 270 billion euros in GDP by 2028.

The Data Act also puts contractual restrictions and interoperability standards on cloud and edge services, making it simpler for businesses to migrate to a competitor and for data to be utilised across industries.

Users of linked devices will be able to access data created by them, which is traditionally solely available to device manufacturers, and share it with other firms offering aftermarket or other data-driven creative services.

During public crises such as floods or wildfires, businesses will be required to give specific data to governments.

Concerns in the EU regarding data transfers have intensified since former US intelligence contractor Edward Snowden exposed vast US monitoring in 2013.

As a result, Europe’s highest court banned the Privacy Shield, a transatlantic data transfer agreement on which thousands of businesses relied for services ranging from cloud infrastructure to payroll and banking.

Since then, the US and the EU have been unable to reach a new data deal.

Before the Data Act may become legislation, it must be worked out with EU countries and legislators.

(Adapted from

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Uncategorized

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