German tech giants SAP and Siemens have joined their US counterparts in raising their voices against the proposed EU Data Act. The law, which aims to tackle the tech industry’s monopolistic powers and support the EU’s digital and green goals, includes a provision that demands companies to share their data with third parties.
However, the German tech giants fear that such an act could spill their trade secrets and shatter Europe’s competitiveness.
The two companies came together and penned a letter to the European Union, calling for protective measures to refuse data-sharing requests in cases where trade secrets, cybersecurity, and health and safety are at stake, as reported by Reuters. They also contended that the legislation should not be expanded to cover more devices.
The letter, dated May 4 and seen by Reuters, has been signed by the chief executives of SAP and Siemens. In the letter, the German companies argue that the legislation could force EU companies 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 also call for the legislation to preserve contractual freedom by allowing customers and providers to agree on the best contracts for each business case.
Triggering a growing debate: Is our data safe and secure?
The proposed EU Data Act has sparked a heated debate between tech companies and lawmakers over the balance between protecting user privacy and promoting innovation. While the law could benefit consumers, it could also put companies’ proprietary information at risk.
SAP and Siemens are not alone in their opposition to the Data Act. Tech giants from the US, including Amazon, Google, and Microsoft, have also criticized the legislation, saying it is too restrictive and could stifle innovation.
The EU’s efforts to regulate big tech companies are part of a broader push to exert greater control over the digital economy. However, the concerns raised by companies like SAP and Siemens demonstrate the challenge of balancing the interests of consumers, companies, and regulators. While greater regulation may be necessary to protect user privacy and ensure fair competition, it’s equally important to safeguard innovation and the competitiveness of EU firms.
Currently, the EU has not responded to the concerns of SAP and Siemens, and the proposed legislation is still being discussed and debated by EU lawmakers. It will likely be some time before it is adopted as legislation.
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