EU parliament votes for data law

The EU parliament voted in favor of the new Data Act. The legislation also includes clauses on the use of smart contracts.

The EU Parliament passed the new legislation on the use of data, summarized as the Data Act, by 481 votes to 31.

The new legislation includes rules on "who has access to data and under what conditions." Essentially, it is about better privacy protection and control mechanisms for tech companies.

The amount of "data generated by humans and machines has increased exponentially in recent years." This is becoming "a decisive factor for innovations by companies and governments," for example in smart cities. "The legislation will give users access to the data they generate, since, according to the European Commission, 80 percent of the industrial data collected is never used." according to the press release.

The Data Act is also and primarily focused on new hype technologies such as AI and the Internet of Things, which require more and more data.

According to María Pilar del Castillo Vera, "It will create a new data-agile system that will provide easy access to an almost infinite amount of high-quality data." The MEP adds, "The law will help optimize existing business models and processes, stimulate the development of new ones and create new value. In other words, an opportunity for innovation and competitiveness."

The crypto industry criticized the legislation in advance. A so-called kill switch feature for smart contracts - a kind of emergency function to disable blockchain applications - caused a stir.

The Data Act must still be formally approved by the EU Council before it can go into effect.