What Does The EU Data Act Mean For Users And Businesses?

The EU Data Act officially came into application on Friday. It was first proposed in February 2022 and politically agreed on in June 2023 before taking legal effect in January last year. The regulation is now active across and intends to give consumers and businesses greater control over the data created by connected devices.

According to the European Commission, the Act requires that products such as smartwatches, cars, televisions and industrial equipment are designed to allow data sharing. Users can access, use and share the raw data their devices generate. The Commission said this should create better conditions for innovation, growth and competitiveness in Europe’s digital economy.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said, “The Data Act empowers users, opens markets, and gives businesses the data they need to create innovative services – from smarter vehicle repairs to new energy-efficiency solutions. We are equally committed to helping companies adapt to the new rules, reducing administrative burden and turning data into real opportunities for people and businesses across Europe.”

 

How Will Consumers And Businesses Benefit?

 

Consumers are expected to see cheaper and more flexible repair and maintenance options. The regulation allows users to go to independent service providers or to do the work themselves, instead of relying on official dealers. For businesses in sectors such as manufacturing and agriculture, access to machine performance data could improve efficiency and daily operations.

The Commission has also published specific guidance on vehicle data sharing. It said this will support better repair services, improve car sharing, and encourage new forms of mobility such as transport subscriptions.

Cloud users will also see changes. Under the Act, customers must be able to switch between providers or use services from several providers at once. This opens the way for multicloud use without the high transfer costs that previously discouraged companies. The law also bans unfair contract terms that could prevent data sharing.

 

 

What Is Google Doing In Response?

 

Google has launched a new service called Data Transfer Essentials to support businesses in the EU and the UK. It waives egress fees for moving data between clouds, directly answering Article 34 of the Act which deals with data interoperability and parallel processing.

The service currently supports 21 Google services, including Cloud SQL, BigQuery Storage API and Cloud Run. It is available to customers on premium plans. Google said it is going “above and beyond” the Act by eliminating charges for in-parallel processing, rather than just passing on basic transfer costs.

This contrasts with Microsoft, which according to the UK Competition and Markets Authority, keeps fees “at cost”. IBM told the CMA that it uses a customer’s headquarters location to decide compliance. Amazon Web Services confirmed that most of its clients already pay nothing for transfers under its existing policy of 100 gigabytes free each month.

AWS and Google already offer some free transfer support for enterprises moving workloads to another provider, but the process requires applications and approval. The Commission has set 12 January 2027 as the deadline for the removal of profiteering from all egress fees under Article 29 of the Act.

Attila Kecsmar, Co-founder and CEO of Antavo, said, “Loyalty and customer engagement platforms are inherently data-heavy. We’re constantly integrating with e-commerce systems, point-of-sale, CRMs, customer data platforms, and moving customer information between all these different environments. What is interesting about the EU Data Act is that it’s removing the ‘friction tax’ that companies used to face when they wanted to change providers or adopt multi-cloud strategies. For loyalty programmes, this shift removes the fear of vendor lock-in and enables brands to choose partners on the strength of their innovation and value rather than on how hard it would be to extract their data later. That change is a win for competition and a validation of open, API-driven platforms like Antavo.

“However, greater portability also introduces risk. Moving customer data between environments demands watertight governance, and compliance with GDPR and security standards is more critical than ever. Loyalty technology providers must prioritise transparency in data flows, invest in robust consent management and design modular architectures that integrate seamlessly across ecosystems. Without this discipline, portability could easily slide into poor practice, undermining trust and exposing brands to regulatory and reputational harm.

“The opportunity here is in innovation. By reducing switching costs, the Act makes it easier for partnerships to grow and for brands to experiment with new technologies, ultimately delivering more engaging experiences for loyalty programme members. My advice to brands is not to treat compliance as a box-ticking exercise, but to use this moment to rethink their entire data strategy. Ask whether the right data is being collected, whether it is being used responsibly, and if the organisation is agile enough to seize new tools as barriers fall away. Those who can answer yes will turn regulation into a source of competitive advantage.”