How the EU Data Act Affects Businesses: Everything You Need to Know
Written By: BOSS Editorial
Reading Time: 3 minutes
The European Data Act has transformed how businesses handle consumer data. It came into force on September 12, 2025, making the most significant piece of data regulation since the General Data Protection Regulation (GDPR).
But the EU Data Act isn’t just a box to tick. It’s a fundamental shift in how businesses manage data from connected devices and digital services. If your business operates in the EU or works with EU consumers, this Act matters to you. Here’s the EU Data Act explained and how it affects businesses:
What Does the EU Data Act Entail?
The European Data Act is a regulation designed to make data more accessible and fair. It generally focuses on data generated by connected devices (IoT) and services. The main goal? Give users more control over their data and reduce unfair practices.
The question arises, how does the EU Data Act differ from GDPR? The General Data Protection Regulation primarily focuses on personal data and privacy. The EU Data Act prioritises data access and use, covering both personal and non-personal data. This is why more businesses will be affected by this Act.
Which Businesses Are Impacted by the EU Data Act?
The EU Data Act applies broadly across several industries, including:
- Manufacturers of connected products. For instance, this can include companies that make wearables and smart devices.
- Data holders and recipients. This includes manufacturers, aggregators, and any party that stores or receives user data.
- Non-EU companies. These are international companies that offer connected products on the EU market or provide data services to EU/EEA users.
Key Obligations for Businesses
To comply with the EU Data Act and other UK data access acts, businesses need to make certain changes to their operations. Here’s a closer look at the key obligations:
- User data access and portability. Manufacturers of connected products must provide users with free, structured, machine-readable access to their device- or service-generated data.
- Data sharing with third parties. Businesses must share data with third parties if requested by the user.
- Ensure contractual fairness. The Act restricts unfair contractual terms regarding data access in B2B agreements.
- Facilitate cloud service switching. Providers of cloud and edge services must remove barriers that prevent customers from switching between providers.
Cost Considerations
The EU Data Act comes with cost considerations. Manufacturers of connected products and cloud services would need to invest in new systems, staff training, and legal reviews. Secure IT systems would also need to be employed to ensure timely data sharing.
What’s Next?
The EU Data Act is set to reshape Europe’s digital economy, impacting any business operating in the EU space. Moreover, for businesses, compliance is not optional. Non-compliance can expose you to risks and operational disruption.
Legal Disclaimer: Please be advised this article is for informational purposes only and should not be used as a substitute for advice from a trained legal professional. Please seek the advice of a legal professional if you’re facing issues regarding the European Data Act.
