The Data Act (Regulation (EU) 2023/2854), which entered into force in January 2024 and saw most core provisions apply from September 12, 2025, aims to unlock Europe’s data economy by removing barriers to access and reuse of data generated by connected products and services. At its heart is the principle that users—individuals or businesses—should have direct access to data from their IoT devices, smart machinery, vehicles, or industrial equipment, often free of charge to the user themselves. But when that data is shared with third parties (other businesses or service providers), the data holder—typically the manufacturer or platform—may request compensation under Article 9.
Article 9 sets out that any agreed compensation in business-to-business (B2B) relations must be non-discriminatory, reasonable, and may include a margin. It requires parties to consider factors like:
- Costs incurred in making data available (formatting, electronic dissemination, storage)
- Investment in collecting or generating the data
- Volume, format, and nature of the data
- Direct benefits to the data holder from the recipient’s use
Crucially, Article 9(4) provides preferential treatment for micro, small, and medium-sized enterprises (SMEs) and non-profit research organizations (provided they lack ties to larger non-qualifying entities). For these recipients, compensation cannot exceed the direct costs of making the data available—no profit margin allowed. This carve-out aims to lower barriers for smaller players and research entities, encouraging innovation and broader data reuse without overburdening them financially.
The Commission’s draft guidelines—now open for feedback—are non-binding but intended as a source of good practices. They outline relevant parameters for determining, assessing, or calculating reasonable compensation, helping parties negotiate fair terms and reducing the risk of disputes. The document emphasizes a “clear distinction between elements to include” in calculations, particularly to honor the SME/non-profit limits.
“Increased clarity from a well-defined compensation framework will help businesses better understand their rights and obligations and reduce ambiguity and legal uncertainty.” — European Commission
Another key statement underscores the stakes: “Developing guidelines for reasonable compensation is critical for implementing the Data Act effectively, ensuring that it achieves its objectives of boosting the data economy while safeguarding fairness and competition.”
Why this matters now: With the Data Act’s main obligations already in effect, uncertainty around compensation has been a major concern for manufacturers of connected devices (automotive, agriculture, energy, consumer electronics) who invest heavily in data-generating technologies. Overly high or unclear charges could deter third-party innovation (e.g., aftermarket services, predictive maintenance apps), while too-low compensation might discourage investment in data-rich products. The guidelines seek to strike that balance—protecting incentives for innovation while preventing anti-competitive or exploitative practices.
For SMEs and startups on the receiving end, the preferential rules are a lifeline: they can access valuable IoT or industrial data without facing profit-loaded fees, potentially spurring new services in smart cities, precision farming, or health tech. Larger players, meanwhile, gain clearer parameters to justify charges without fear of arbitrary challenges.
The consultation process is straightforward: stakeholders can submit comments via email to CNECT-DATA-ACT@ec.europa.eu by February 20, 2026. A supporting webinar took place (or is upcoming) on February 10, 2026, from 10:30 to 12:30 CET, allowing live input. The draft text is available for download directly from the consultation page, alongside a privacy statement for submissions.
This move fits into the Commission’s broader Data Act implementation roadmap, which includes model contract clauses, interoperability standards, and other guidance. As Europe pushes for a single data market to rival global competitors, getting the compensation rules right is seen as essential to making data flow fairly and productively across sectors.
With the window closing soon, affected industries—IoT makers, cloud providers, app developers, research bodies—are urged to review the draft and contribute. The final guidelines, informed by this feedback (and advice from the European Data Innovation Board), will provide much-needed predictability in what remains one of the regulation’s most debated provisions.
In a data-driven economy, fair compensation isn’t just about money—it’s about enabling trust, innovation, and competition. The Commission’s draft offers a path forward; the next few weeks will help refine it.
What do you think—will these guidelines strike the right balance? Share your views in the comments!
