Oct 10th, 2018 - 2 min read

The European Commission adopts new regulation on the free flow of non-personal data

The European Commission adopts new regulation on the free flow of non-personal data

A major step for data development in Europe. On October 4, 2018, the European Commission announced its approval of the free flow of non-personal data. The step forward is crucial for Dawex, as the decision removes numerous constraints and makes it easier to exchange data.

The European Commission feels that the economy depends increasingly on data. Data can "create considerable value added for existing services" and "make it easier to create new sales models."

Thus, this regulation will allow non-personal data to be stored and processed anywhere in the European Union, without being prohibited by the national laws of Member States. The regulation establishes data as the "fifth freedom" in the European single market, after the free movement of goods, services, capital, and people.

The new regulation is governed by two main rules. The first rule establishes codes of conduct, defined by market players, that will set the conditions for sharing data. This rule effectively supports easier switching of Cloud Service Providers for business users.
The second rule stipulates that Member States may retain access to data, even if it is located in another Member State, or when it is stored or processed via the Cloud.
These new applications are consistent with all the security requirements imposed on companies that already store and process data.

Dawex is in a position to benefit from this regulation since, according to the European Commission itself, work on the free flow of data has been announced as part of actions aimed at "strengthening the data economy."

In addition, the regulation will eliminate many of the barriers that exist today, such as:

  • Unjustified restrictions by public authorities in Member States regarding the location of data
  • Legal uncertainty concerning the legislation applicable to cross-border data storage and processing
  • Lack of trust in cross-border data storage and processing, related to Member State authorities' concerns about the availability of data for regulatory control purposes
  • The difficulties in switching service providers (such as Cloud providers) due to provider lockout practices

Eliminating these barriers is expected to increase the value of the EU's data-based economy from 1.9% to 4% of GDP from 2015 to 2020.

Dawex commends this decision by the European Commission, as well its willingness to facilitate data exchange throughout the EU.