COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on European data governance (Data Governance Act)
Date: 2020-11-25
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: access to information, administrative cooperation, data protection, data transmission, exchange of information, information storage and retrieval, personal data, public sector, right to reuse information, single market

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   EUROPEAN COMMISSION  Brussels, 25.11.2020  SWD(2020) 296 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on European data governance   (Data Governance Act) {COM(2020) 767 final} - {SEC(2020) 405 final} - {SWD(2020) 295 final}  
 
 
A. Need for action 

What is the problem and why is it a problem at EU level?  

The problem that this initiative addresses is that data sharing in  the EU remains limited, in spite of the 
potential benefits of such sharing for the economy and for society. Three main reasons for this have been 
identified:  
 
  difficulties in reusing certain public-sector data and collecting data on altruistic grounds; 
 

technical obstacles to reusing data. 

low trust in data sharing; 

What should be achieved? 

The objective is to increase trust in data sharing, strengthen mechanisms that increase data availability and 
overcome  technical  obstacles  to  reusing  data.  This  will  support  the  availability  of  data  for  use  in  the 
economy  (to  develop  new  products  and  services,  higher  efficiency)  and  society  (to  address  societal 
challenges).  The  initiative  aims  to  create  the  basis  for  a  new,  European  way  of  data  governance  as  an 
alternative to the platform model currently led by Big Tech companies. 

What is the value added of action at the EU level (subsidiarity)?  

By  having  common  rules  in  all  Member  States,  the  initiative  would  ensure  that  companies  can  benefit 
from  the scale of the  internal  market,  and deploy  their products  and services  across the EU. Companies 
and  research  organisations  would  be  able  to  access  data  from  different  Member  States  under  similar 
conditions. 

B. Solutions 

What are the various options to achieve the  objectives? Is there a preferred option or not? If not, 
why? 

The impact  assessment focused on four intervention areas:  mechanisms for an enhanced reuse of public 
sector  data,  measures  to  create  trust  in  data  intermediaries,  measures  to  facilitate  data  altruism  and  the 
creation of a European mechanism to coordinate and steer horizontal aspects of governance. For each area, 
the  impact  assessment  considered  soft  options  such  as  guidance  or  recommendations,  and  two  hard  law 
options that differ in terms of their degree of intensity. 

The  analysis  concluded  that  soft  law  measures  cannot  be  expected  to  create  the  necessary  trust  in  data 
sharing  in  the  different  intervention  areas.  For  example,  data  altruism  has  a  strong  consumer  protection 
component whose objectives are difficult to achieve based on soft measures only. 

As for an enhanced reuse of public-sector data, both a centralised and a decentralised model for handling 
data reuse were considered. For measures aiming to create trust in data intermediaries, the options differed 
in terms of the voluntary or compulsory nature of the labelling/ certification scheme. For data altruism, the 
options of a voluntary certification scheme and a compulsory authorisation scheme were assessed. Options 
for the creation of a European mechanism to coordinate and steer horizontal aspects of governance were 
the creation of a self-standing legal body and entrusting the Commission with setting up an expert group. 

The  assessment  concluded  that  for  three  intervention  areas,  the  lower  intensity  option  was  preferable. 
However, for data altruism the higher intensity option was more favourable: a compulsory authorisation 
issued by a public authority would create the required trust in data altruism mechanisms. For the labelling 
or  certification  of  data  intermediaries,  the  higher  intensity  compulsory  scheme  would  also  be  a  feasible 
alternative,  as  it  would  set  clear  rules  for  operating  within  the  European  data  market  and  would  create 
higher trust in the services of such intermediaries.  

What are different stakeholders' views? Who supports which option?  

 
 
Public authorities welcome efforts to facilitate the participation of the public sector in common European 
data  spaces.  They  support  a  one-stop  shop  mechanism  for  data  reuse,  as  well  as  a  stronger  role  of  EU 
bodies in the prioritisation of standards. Industry organisations, including SMEs and business associations, 
highlight  the  importance  of  standardisation  and  interoperability,  and  advocate  for  the  adoption  of  a 
voluntary  certification/labelling  mechanism  for  data  intermediaries.  Academic  and  research  institutions 
support the enhancement of the reuse of certain  public-sector data and data altruism. The general public 
supports  an  overall  data  strategy  and  altruistic  sharing  of  data,  as  well  as  the  roll-out  of  technical  tools 
allowing people to actively participate in the data economy. 

C. Impacts of the preferred option 

What are the benefits of the preferred option (if any, otherwise of main ones)?                                     

The  preferred  package  would  have  a  direct  impact  on  the  EU  data  economy  of  between  EUR  7.2  and  
EUR  10.9  billion  in  2028.  In  addition,  the  initiative  would  act  as  a  catalyst  for  creating  more  efficient 
services and new products based on data, including artificial intelligence This would benefit not only the 
data economy but  also  the EU economy  and society  as  a whole. For example, it help  gain the potential 
EUR 1.3 trillion in increased productivity in manufacturing by 2027 through Internet-of-Things data, and 
help to save around EUR 120 billion a year in the EU health sector. 

What are the costs of the preferred option (if any, otherwise of main ones)?                                    

The report details the different costs of each measure for the stakeholders concerned, including both data 
producers and reusers. For instance, a voluntary labelling scheme would produce a one-off cost of EUR 
20 000-50 000 for data intermediaries to obtain a label. 

What are the impacts on SMEs and competitiveness?  

SMEs will benefit from simplified access to public-sector data. For new data intermediaries, the potential 
gains in client base and revenue will by far exceed the costs incurred for certification/labelling. 

Will there be significant impacts on national budgets and administrations?  

Member States that do not already have in place structures for making publicly held data available would 
incur costs. This could amount to a one-off cost of EUR 10.6 million on average per Member State and to 
a  recurrent  annual  cost  of  EUR  610 000  for  maintenance.  However,  the  economic  gains  from  fees  and 
savings due to higher efficiency (the latter estimated at EUR 684 million a year) would by far outweigh 
these costs.  

Will there be other significant impacts?  

A better use of data can lead to improvements in health and well-being, a better environment, strengthened 
climate  action  and  more  efficient  public  services.  In  the  health  sector,  data  can  help  develop  better  and 
more personalised treatments. In the mobility sector, in addition to saving more than 27 million hours of 
public  transport  users’  time,  up  to  EUR  20  billion  a  year  could  be  saved  in  labour  costs  of  car  drivers 
thanks to real-time navigation. This reduces time stuck in traffic and has benefits for the environment, due 
to reduced CO2 emissions and air pollution. 

Proportionality?  

The  initiative  is  an  enabling  framework  for  data  sharing  in  the  EU.  It  is  proportionate  to  the  objectives 
sought and leaves flexibility for additional measures at national and sector-specific levels. 

D. Follow up 

When will the policy be reviewed?  

 
 
The policy will be reviewed after 4 years.