This blog is part of a series on three important documents the European Commission (EC) released on February 19, 2020, to outline its digital strategy and policy objectives.

TLDR: The European Strategy for Data

The data strategy is part of the digital package the European Commission (EC) released in February. It lays out a framework for increasing data access and how the EU can help European businesses to capitalize on EU-generated data. The goal is to make the EU a global data hub and to help all EU economic players, including small and medium sized enterprises (SMEs), start-ups, large corporations, and EU citizens, benefit from the use of personal and industrial data. The main elements of the strategy are:

  • A cross-sectoral governance framework for data access and use
  • Making more high-quality public sector data sets available for reuse, especially for SMEs
  • A Data Act to provide incentives for horizontal data sharing across sectors
  • Legislation related to limited circumstances in which data access should be compulsory
  • A centralized European cloud marketplace
  • Review of individuals’ rights to data portability
  • Promoting the development of sector-specific common data spaces

With the overall goal of a single European data space and positive elements like the noticeable emphasis on SMEs and the proposal of a European cloud marketplace, we believe this strategy is a step in the right direction. We hope that when the EC specifies its policy proposals, it adequately addresses the issues of technical specifications, interoperability, standards and the challenge of respecting European privacy rules while using data.

The Context

The Data Strategy is one of three documents the EC released as part of its “Shaping Europe’s Digital Future” strategy on February 19, 2020. Read our takeaways of the roadmap here. Read our response to the EC on its consultation on A European Strategy for Data.

Breaking it Down: A European Strategy for Data

The strategy is structured around four building blocks:

  1. A cross-sectoral governance framework for data access and use
  2. Investments in data and strengthening Europe’s capabilities and infrastructures for hosting, processing and using data, interoperability
  3. Empowering individuals, investing in skills and in SMEs
  4. Common European data spaces in strategic sectors and domains of public interest

  1. A cross-sectoral governance framework for data access and use

Through a legislative framework the EC wants to facilitate cross-border data use, clarify data use, and address interoperability requirements and standards for businesses across and within different sectors. The EC also wants to make more high-quality, machine-readable public sector data available for free so it can be (re-)used for innovation, especially by SMEs. Further, the EC may propose a Data Act to incent horizontal data sharing between different actors such as business-to-government, business-to-business, and government-to-business. The Data Act may also include enhanced data portability rights. The Commission may also review its current intellectual property framework and assess which measures are appropriate to create data pools for analysis and machine learning. The key actions proposed by the EC are:

  • Propose a legislative framework for the governance of common European data spaces
  • Propose a Data Act and adopt an implementing act on high-value datasets
  • Potential review of intellectual property framework as it relates to data

  1. Enablers: Investments in data and strengthening Europe’s capabilities and infrastructures for hosting, processing and using data, interoperability

The Commission commits to using its convening power and EU funding programs to drive strategic investments, support data-driven innovation and strengthen Europe’s technological sovereignty. From 2021 to 2027 the Commission will also invest in a targeted ‘High Impact Project on European Data Spaces’ to fund EU-wide interoperable data spaces to facilitate data sharing across the EU and to make high-value data sets available for reuse. The project will support European data-sharing tools, data architecture, and infrastructure as well as create data governance mechanisms and best practices. This project is part of a broad set of strategic investments in new technologies, including funding for high-performance computing, cybersecurity, low-power processors, and 6G networks.

For both public and private cloud service procurement, the EC intends to set up an EU-wide marketplace for cloud services. This will especially help the public sector and SMEs to select cloud processing software and platform services offerings that already comply with EU requirements more easily. A ‘Cloud Rulebook’ will compile existing cloud codes of conduct and certification and provide coherent guidelines for how to comply with EU cloud market rules. In addition to these EU-wide initiatives, the EC wants to support individual member state initiatives (like Germany’s GaiaX). To improve the EU’s public sector data processing capacities, the EC wants to set common European standards and requirements for public procurement of data and processing services. The EC also sets out its plans to continue supporting crucial technologies for the data economy via the Horizon Europe program. The key actions proposed by the EC are:

  • Invest in a High Impact Project on European Data Spaces, including data sharing infrastructure (standards, best practices, and tools) and governance mechanisms, and cloud infrastructure
  • Sign Memoranda of Understanding (MoUs) with Member States on Cloud Federation and create an EU self-regulatory cloud rulebook
  • Launch a European Cloud Services Marketplace that integrates the full stack of cloud offerings

  1. Competences: Empowering individuals, investing in skills and in SMEs

The strategy proposes reviewing Art. 20 of the General Data Protection Regulation (GDPR) to enhance consumers’ data portability rights and perhaps adding stricter requirements for real-time data access and compulsory machine-readable formats for data originating from certain products (e.g., smart appliances or wearables). The EC might also consider rules for providers of personal data apps to guarantee their role as neutral brokers. In its effort to invest in skills, the EC wants to make funding available to expand the digital talent pool. Similarly, the EC proposes a reinforced skills agenda to increase digital literacy across the EU. An update of the Digital Education plan is meant to make educational institutions ready to use data to improve their services. The EC’s upcoming European SME strategy will define additional measures to support SMEs in their use of data to scale up. Through existing programs and structural investments, the EC intends to create more opportunities for SMEs to access data and innovate new products. The key action proposed by the EC is:

  • Explore enhancing individuals’ right to data portability under Art. 20 of the GDPR (2021) 

  1. Common European data spaces in strategic sectors and domains of public interest

To make large pools of data available in strategic economic sectors and domains of public interest, the Commission plans to promote the development of sector-specific common data spaces. The strategy lists nine different data spaces for the following sectors: industrial manufacturing, European Green Deal, mobility, health, financial, energy, agriculture, public administration, and skills.

Our Takeaway

This strategy sets out the ambitious goal of a single European data space. We appreciate the emphasis on SMEs throughout, and it is notable that the EU is increasingly considering data as a resource that can help to create growth and jobs. There are many positive elements in this document. A truly single data market and facilitated data sharing is helpful for all European companies to increase the size of the data pool they can access and use for research and innovation. A European cloud marketplace may help smaller platform providers to compete with larger companies and might also efficiently provide more choice for small businesses and member state governments when they are purchasing cloud infrastructure. We appreciate the emphasis on putting more data and control in the hands of EU companies, particularly SMEs.

However, it is important to consider that Europe looks at data governance differently than other players in the game. Especially when it comes to privacy, the strategy doesn’t sufficiently address the challenge of using data while respecting European rules (e.g., GDPR). Similarly, technical specifications, interoperability, and standards are not part of any concrete regulatory actions proposed in the strategy. The EC has done an excellent job identifying several important concerns and obstacles to achieving its goals. We look forward to working with the Commission to develop regulatory solutions that address those issues in ways that are scalable and benefit all players in the European data economy.