Cluj-Napoca 06.06.2022
In the era of accelerated digital transition, with increasingly complex and profound implications for how we live and work, the need to regulate digital technological processes, new types of transactions, and business models becomes evident. The goal is to protect the principles and values of equal opportunity, non-discrimination, and to encourage innovation and balanced competition for all market players at the European Union level.
One such initiative is the "Data Act," through which the European Commission is proposing new rules on who can use and access data generated in the EU, across all economic sectors. The Data Act will ensure fairness in the digital environment and stimulate a a competitive data market, would open opportunities for data-driven innovation and would make data more accessible for everyone. It will lead to new, innovative services and more competitive prices for aftermarket services and repairs of connected objects. This latest horizontal block of the Commission's data strategy will play a key role in the digital transformation, in line with the digital objectives for 2030.
Representatives of the IT industry in Romania are contributing to the drafting of the Data Act formulated at the European level, through direct involvement in the public consultation process conducted by the European Commission between March 14 and May 24, 2022.
The consultation process with the private sector was coordinated by the European Digital SME Alliance, the largest network of small and medium-sized enterprises in information and communication technologies in Europe, representing over 45,000 businesses.
Cluj IT Cluster participated with a team of experts from the Romanian IT industry, members of the cluster: Marin Iuga, CEO of Intertehnica, coordinator of the Data Intelligence working group of Cluj IT Cluster and of the consultation team formed for the Data Act; Valentin Bogdan Crețu, Project Manager at ProjectX Software and coordinator of the Learning&Development working group of Cluj IT Cluster; Răzvan Florian, CEO of the Romanian Institute of Science and Technology; Radu Orghidan, member of the Board of Directors of Cluj IT Cluster; and Stelian Brad, President of Cluj IT Cluster. They were joined by the expert team from Legal Accelerators, Cluj IT's partners in the field of technology and innovation jurisprudence.
“The Data Act will encourage companies to ethically and traceably collect and trade data in the digital economy on a competitive data market. This will create positive contexts for data-driven innovations. Through the Data Act, companies and citizens will have increased control over the data they trade on the market. This is a critical aspect for the development of the data-driven economy.has declared Stelian Brad, President of the Cluj IT Cluster
The team of experts from Cluj IT Cluster, ideas and observations on the Data Act
The effort to analyze the text proposed by the European Commission, in the context of Romania's economic and legislative reality and complemented by the projection of scenarios applied to the industry and to small and medium-sized companies, was materialized by the team of experts into a suite of ideas and observations. These were aimed at strengthening the constructive and efficient components, on one hand, and adjusting some critical directions addressed in the legislative proposal, on the other. Among these, we list:
- Clarifications are needed regarding the applicability of the provisions to small and medium-sized companies, whether directly or indirectly, to prevent the possibility of creating loopholes to avoid the application of the new regulation.
- While data sharing can be controlled, the same must happen with machine learning (ML) models trained using such data. Public entities that have access to large volumes of data must be regulated regarding the use of models trained with data that is not accessible to other commercial companies. Therefore, MLOps mechanisms must exist to ensure the traceability of the data used in training ML models.
- The provisions that prohibit the development and use of mass biometric tracking applications, as well as those related to predictive policing systems, are welcome, given their potential to limit individual rights and freedoms and to erode the democratic process.
- The provisions that regulate the protection of data generated by users of various applications are welcome. Although they may increase the effort for companies to align (similar to the application of GDPR regulations), they bring far superior protection benefits for European citizens.
- The provisions regarding the exceptional use of data by public institutions raise concerns due to their potential to create abuses and harmful market disruptions. This is because the text lacks clarity, which could lead to inconsistent application of the regulation at the European level, as well as multiple disputes, especially at the local level.
- Date fiind implicațiile legale ale GDPR, noua reglementare trebuie să asigure implicit protecția datelor personale încă din etapa de proiectare, asigurând mecanisme de trasabilitate a datelor tranzacționate pe întregul lanț de tranzacționare.
“The Data Act will have an impact on data markets and how we do data-driven business in Europe for the next decade. The Cluj IT "Data Intelligence" working group welcomes this initiative, especially the provisions related to the protection of customer data and the prohibition of mass surveillance. The Data Intelligence working group is, however, concerned about the provisions related to the exceptional use of data. We agree that the exceptional use of data can be justified when saving lives or preventing disasters; however, we are concerned when the exceptional use of data can lead to discretionary behavior by public bodies against data holders. These behaviors can create harmful market disruptions and—potentially—discourage data-driven businesses in Europe. Ultimately, we believe that... The Data Act is an important step in the right direction. It certainly needs improvements, but we are convinced that these improvements will be incorporated as the legislation adapts to the future challenges of the market and society.”have concluded the representatives of the working group Data Intelligence from Cluj IT Cluster.
We invite you to consult the full text of the Cluj IT Cluster's position, available here
In conclusion, in its current form, the legislative proposal includes a series of aspects that could negatively impact small and medium-sized companies in areas such as: the way data is traded at a European level, the traceability of traded data while respecting GDPR, and the exceptional need to use data.
We extend our thanks for the valuable contribution to the team of experts involved in the analysis and positioning in relation to the Data Act, consisting of:
MARIN IUGA, CEO
Coordinator of the Data Intelligence working group of the Cluj IT Cluster and of the consultation team formed for the Data Act.
www.intertechnica.com , www.clujit.ro/working-groups/wg-data-intelligence/
VALENTIN BOGDAN CRETU, PROJECT MANAGER
Coordinator of the Learning&Development working group of the Cluj IT Cluster,
www.clujit.ro/working-groups/wg-learning-and-development/
RAZVAN FLORIAN, CEO
STELIAN BRAD, President of Cluj IT
RADU ORGHIDAN, member of the Board of Directors of Cluj IT
Partner in the field of technology and innovation jurisprudence:
Av. MIHAI CARABAȘ Partner at the Cărăbaș Lungu Civil Lawyers Society
Lect. univ. dr. ALINA OPREA – Faculty of Law, Babes-Bolyai University, Cluj-Napoca
