Page 15 - The Katten Kattwalk - Fall 2025 - Issue 30
P. 15
By Trisha Sircar and Anita Hodea
he European Union (EU) Data Act (EDA) linked to connected products fall within
came into force on January 11, 2024, and scope. They must enable interoperability, data
took effect on September 12, 2025. It access and portability, and facilitate seamless
Tis set to reshape how companies handle switching between providers.
data generated by connected products, smart • Data Holders and Recipients: Obligations differ
devices and cloud services across Europe. Its goal based on role. For example:
is to create a fairer and more competitive digital
economy by enhancing user rights, ensuring fair – The “Data Holder,” often the manufacturer or
access to and sharing of data, and maintaining service provider, controls access to the data;
robust data protection safeguards. – The “User,” who may be the owner, renter or
Applicability: Who Must Comply? lessee of the product, has the right to access
and share the data; and
The EDA has wide-ranging implications across
industries, including fashion, where connected – The “Data Recipient,” such as an after-market
wearables, smart textiles and data-driven retail service provider or third party, may obtain
experiences are becoming increasingly integrated access when authorised by the “User.”
into both product innovation and customer • Non-EU Companies: Companies established
engagement. It applies to both EU and non-EU outside the European Union are also subject to
organizations that manufacture or offer connected the EDA if they place connected products on
products in the European Union, process user- the EU market, provide related services or offer
generated data within the European Union or data processing services to EU/EEA users.
provide data processing services to users in the
European Economic Area (EEA). Any connected • Public Authorities: EU Member State
product that generates or collects data during authorities, along with EU institutions
the course of its use and communicates it via the and agencies, may request data held by
internet or another network will fall within the private entities during emergencies (such
scope of the EDA. as cybersecurity events) or legal mandates,
with appropriate safeguards in place. For
Key groups include:
nonemergency public interest requests, data
• Manufacturers of Connected Products: sharing is permitted on fair, reasonable and
Internet of Things devices, smart appliances, non-discriminatory terms, and compensation
fashion wearables, smart clothes, vehicles or must cover the costs incurred in making the
industrial machinery. From September 12, data available.
2026, connected products placed on the EU Organizations can have multiple roles under the
market must be designed to allow users to EDA simultaneously, such as data holder, user or
access their generated data, either directly or recipient, making it critical to understand their
on request.
obligations in the data ecosystem. This is relevant
• Providers of Related Services: Software-as-a- in the fashion industry, where collaboration among
Service, Platform-as-a-Service, Infrastructure- designers, manufacturers, retailers and technology
as-a-Service or edge computing providers providers around connected products and services
is common.
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