requested by the user to make data available to a third party, then the data holder can require the third party, not the user, to pay reasonable compensation for the cost of providing the data, but not for the data itself. The EC has foreseen that levels of
compensation might be contentious, so the Data Act sets out arrangements for resolving disputes and lays the foundations for dispute settlement bodies that can decide whether compensation is reasonable. Initially, providers of data processing services
can charge users for switching between different providers. However, these switching charges will be abolished after three years.
So far, we have focused on situations where, typically, a user wishes to share data with a third party of their choosing. In addition, the Data Act covers the requirement for data holders to make data available to public sector bodies, the Commission, the European Central Bank and Union bodies when there is an exceptional need, such as in the event of a public emergency. Data holders are entitled to compensation for making the data available. Micro and small businesses are exempt from the requirement to share data with authorities.
For machine builders based outside the EU, a key point to note is Article 37, Clause 11: ‘Any entity falling within the scope of this Regulation that makes connected products available or offers services in the Union, and which is not established in the Union, shall designate a legal representative in one of the Member States.’ Clause 12 explains what the legal representative is mandated to do, which is essentially to act on behalf of an entity to cooperate with the relevant authorities and, upon request, demonstrate how connected products and related services are in compliance with the Data Act. Hold Tech Files is based in the Republic
of Ireland and is therefore established in the EU. It performs numerous roles for non-EU machine builders in accordance with various EU legislation, including acting as a legal representative in line with the requirements of the Data Act.
From the perspective of a non-EU machine builder exporting to the EU, complying with the Data Act requires the following unless there are relevant exemptions: • Certain information about the data and its usability must be made available before a sale,
lease or rental contract is concluded;
• There must be an agreement with the data user regarding which data is sharable, the characteristics of that data and how it would be shared, and this agreement must be fair to both parties;
• If harmonised standards or common specifications have been published, then the data should comply with these unless it can be shown to meet the essential requirements (stated in Article 33) another way;
• Data and metadata must be suitable for sharing with the data user or, upon request from the user, a third party;
• Upon request from the user, the data holder must be ready to share the data with the user or a third party;
• A method should be established for calculating the reasonable level of compensation that can be claimed for transferring data to a third party or the authorities; and
• Before placing the product on the market, a machine builder outside the EU must appoint a legal representative who is established in the EU.
Coming up in the February 2026 issue
• Sensors & sensing systems • Gears & gearboxes • Fastenings & adhesives • CAD/software • Linear motion
• Machine building, frameworks & safety • Additive manufacturing/3D printing • Industry focus: Military, aerospace & defence • Supplement: Enclosures & Panel Building Solutions
If you are interested in being part of our next issue, please contact Rachael
rmorling@datateam.co.uk for editorial; or Jordan
jtait@datateam.co.uk or 01622 699139 for advertising.
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