From 12 September 2025, a new European law changes who controls the data flowing out of everyday connected products - cars, smart appliances, industrial sensors, farm equipment. The Data Act gives consumers and businesses a legal claim to information generated by devices they own or use, rather than leaving that data locked inside manufacturers' systems. The shift touches sectors far beyond technology, including agriculture, construction, manufacturing and cloud services.
Why device data became a policy problem
Connected products generate a continuous stream of operational data - engine performance, usage patterns, sensor readings - that manufacturers have historically retained and monetised exclusively. Users bought the hardware but had no automatic right to the data it produced, which meant they were often tied to a single provider for maintenance, repairs or software services. The Data Act treats this data as an extension of the product itself, arguing that whoever generates value through use should have a say in how the resulting information is shared.
What changes for businesses and consumers
The regulation requires connected devices sold in the EU to be designed so that data sharing is technically possible from the outset. It also targets contractual practices that quietly blocked data portability, banning terms that unfairly prevent users from switching services or providers.
- Consumers gain the option to use third-party services instead of relying solely on the original manufacturer
- Businesses in manufacturing, agriculture and logistics can access equipment performance data to refine operations
- Switching between cloud and data-processing providers becomes easier, reducing lock-in
- Public authorities can request privately held data in defined emergency situations, with limits on the burden placed on companies
A parallel effect is on aftermarket competition. Independent repair and maintenance providers, previously shut out of manufacturer-controlled data, can now build services around the same information, which may lower costs for equipment owners and extend product lifespans - a point the Commission links to broader environmental goals.
Balancing access with confidentiality and investment incentives
Opening up data access raises an obvious tension: how to share information fairly without discouraging the investment that produced it in the first place. The Data Act addresses this by setting clear conditions for permissible use, while the Commission is developing model contract clauses to help smaller companies negotiate data-sharing agreements without the leverage of a large legal team. Confidentiality safeguards are built into the framework, and a review of the Database Directive's sui generis right is intended to stop manufacturers from using database protections to block access to data collected via Internet-of-Things devices.
Implementation is still a work in progress
The Commission has published FAQs, draft non-binding model contractual terms, standard clauses for cloud contracts, and specific guidance on vehicle data, and has opened a legal helpdesk to field questions from companies applying the rules. Guidance on what counts as "reasonable compensation" for mandatory business-to-business data sharing is still to come. This iterative approach reflects the complexity of applying one cross-sectoral law to industries as different as precision farming and cloud computing - and signals that compliance expectations will keep being refined well beyond the entry-into-application date.