UPDATED 15:15 EDT / FEBRUARY 23 2022

POLICY

EU proposes new industrial data rules

The European Commission today proposed new legislation to regulate how industrial data, such as information generated by “internet of things” devices, can be accessed and shared in the European Union.

One of the main objectives of the proposed legislation, known as the Data Act, is making it easier to put industrial data to use. An estimated 80% of industrial data is never used, according to the European Commission, even though such information can be valuable for tasks such as troubleshooting IoT devices. It’s believed that, by making industrial data easier to use, the Data Act could add 270 billion euros to the European Union’s gross domestic product by 2028. 

One set of rules included in the Data Act would  make it easier for users to access the data generated by their connected devices. Today, IoT hardware makers don’t always provide a convenient way to retrieve device data. The proposed legislation would require hardware makers to give users the ability to both access their data and share it with third parties. 

One potential benefit of the legislation is that it could make it more practical for companies and consumers to use predictive maintenance services. A predictive maintenance service is an application that analyzes data from an IoT device to identify potential technical issues. The technology is especially popular in the enterprise, where it’s used for tasks such as troubleshooting malfunctioning industrial equipment.

Because predictive maintenance services rely on device data to work, making it easier to access device data could encourage adoption of the technology. That, in turn, would make it easier for companies to repair IoT devices. 

The proposed legislation may also help improve IoT cybersecurity. The machine-generated data produced by a connected device often contains valuable cybersecurity information and certain breach detection tools use this information to detect hacking attempts. By simplifying the process of access device data, the legislation could make it easier for companies to secure their IoT hardware. 

“We want to give consumers and companies even more control over what can be done with their data, clarifying who can access data and on what terms,” said European Commission Executive Vice President Margrethe Vestager. “This is a key Digital Principle that will contribute to creating a solid and fair data-driven economy and guide the Digital transformation by 2030.”

Another focus of the legislation are data sharing contracts that small and midsize businesses sign with other companies. An analytics software startup, for example, may sign a data sharing contract with an IoT device manufacturer to let joint customers analyze information from manufacturer’s devices. 

The Data Act includes rules that would shield small and midsize businesses from “unfair contractual terms imposed by a party with a significantly stronger bargaining position.” For added measure, the European Commission plans to develop contractual term templates to help companies draft fair data sharing agreements. 

The proposed rules in the Data Act also encompass a number of other areas. The legislation would enable “public sector bodies to access and use data held by the private sector that is necessary for exceptional circumstances, particularly in case of a public emergency, such as floods and wildfires.” Additionally, the Data Act would make it easier to move information between cloud-based data processing services such as those offered by the major cloud providers.

“Business and industrial players will have more data available and benefit from a competitive data market,” the European Commission stated. “Aftermarkets services providers will be able to offer more personalised services, and compete on an equal footing with comparable services offered by manufacturers, while data can be combined to develop entirely new digital services as well.”

Photo: Unsplash

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