B2B Data Sharing

B2B data sharing is the sharing of data between organisations under the Data Act. The regulation ensures that businesses can access data from connected products on fair and transparent terms, so data does not remain locked with a single actor.

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What is B2B data sharing?

B2B data sharing under the Data Act concerns the obligation for organisations to share data with one another. When a data holder collects data from a connected product, other organisations may request access to those data.

The rationale is straightforward: data from connected products hold significant value for innovation, maintenance and new services. Without regulation, manufacturers of smart devices risk monopolising all data and blocking competition. The Data Act therefore creates a legal framework in which data portability and data sharing become a right, not merely a possibility.

B2B data sharing differs from the data sharing you may know from GDPR. Here the focus is not on personal data and privacy, but on creating a well-functioning internal market for data. Of course, GDPR still applies when data contain personal information. In that case, you must ensure a valid consent or other legal basis for processing.

FRAND terms and compensation

The Data Act requires B2B data sharing to take place on FRAND terms: Fair, Reasonable and Non-Discriminatory. This means three things for your organisation:

Fair: The terms must be transparent and clear. You must know precisely which data you gain access to, in which format and with which limitations.
Reasonable: A data holder may charge compensation for making data available, but the price must be proportionate to the costs incurred. SMEs benefit from specially relaxed terms.
Non-Discriminatory: A data holder cannot offer better terms to its own subsidiary than to an independent competitor. Equal terms for comparable recipients is a core requirement.

The compensation model is designed to prevent large actors from using high prices as a barrier. If you are an SME, you are entitled to terms that reflect the actual costs of handling data, not the market value of the data.

Rights and limitations

As a data recipient, you gain the right to use data for the agreed purpose. You must not:

Pass data on to third parties without the data holder's acceptance
Use data to develop a competing connected product
Derive insights that undermine the data holder's trade secrets

The data holder, in turn, is obliged to make data available in a format that supports interoperability. That means structured, machine-readable formats that the recipient can actually use.

The Data Act prohibits unfair contractual terms in B2B agreements. A clause granting the data holder a unilateral right to change terms, or imposing disproportionate sanctions on the recipient, will be deemed void. This particularly protects smaller organisations from being pressured by large actors.

Practical implementation

If your organisation needs to implement B2B data sharing, you should start by mapping your data flows. Which data do your connected products generate? Which data do you receive from others?

You must establish clear agreements that satisfy the FRAND terms. This requires you to have control over:

Data formats and technical interfaces (APIs)
Encryption and access control as security measures
Documentation of data origin and quality
Procedures for handling personal data in compliance with GDPR

Many organisations choose to implement technical and organisational measures that ensure data are only shared with authorised parties. A robust ISMS gives you a structured approach to managing the security aspects of data sharing.

B2B data sharing under the Data Act is an opportunity to create new business models and innovation. Organisations that get their data-sharing processes in order early will be better positioned in a market where data is increasingly a competitive parameter.

Frequently Asked Questions about B2B Data Sharing

What is B2B data sharing under the Data Act?

B2B data sharing under the Data Act is a regulated form of data sharing between organisations, where data holders must make data from connected products available to other organisations on fair, reasonable and non-discriminatory terms (FRAND).

Can a data holder refuse to share data with another organisation?

A data holder may only refuse data sharing in limited circumstances, e.g. if it would reveal trade secrets. The data holder may charge reasonable compensation but must not use price as a means to block access.

How does the Data Act protect against misuse in B2B data sharing?

The Data Act prohibits unfair contractual terms in B2B data-sharing agreements. The recipient may only use data for the agreed purpose and must not pass data on to third parties without the data holder's consent.

What are FRAND terms in the context of data sharing?

FRAND stands for Fair, Reasonable and Non-Discriminatory. It means that data holders must offer data sharing on terms that are fair, reasonable and do not discriminate between recipients in comparable situations.