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Siemens Calls Out EU Draft Data Act Saying It Puts Trade Secrets At Risk

 |  May 8, 2023

SAP and Siemens, both German companies, have expressed concern over the draft EU laws regarding the use of data generated by smart gadgets and other consumer goods.

The Data Act, proposed by the European Commission in 2020, is currently being worked on by EU countries and lawmakers.

The legislation aims to regulate EU consumer and corporate data and is part of a larger effort to balance the power of US tech companies and promote the EU’s digital and environmental goals.

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US criticisms have included that the proposed law is too restrictive, while the German companies say a provision forcing companies to share data with third parties to provide aftermarket or other data-driven services could endanger trade secrets.

“It risks undermining European competitiveness by mandating data sharing – including core know-how and design data – with not only the user, but also third parties,” the companies wrote in a joint letter to Commission President President Ursula von der Leyen, EU antitrust chief Margrethe Vestager and EU industrial chief Thierry Breton.

“Effectively, this could mean that EU companies will have to disclose data to third-country competitors, notably those not operating in Europe and against which the Data Act’s safeguards would be ineffective,” they said.