EXPERT COLUMN
SINDHU KASHYAP SENIOR CONTENT STRATEGIST,
MIDDLE EAST & AFRICA
DEMOCRATISING DATA – WHAT THE EU DATA ACT MEANS FOR MIDDLE EAST BUSINESSES
Europe’ s new Data Act aims to give users greater control over connected devices and AI-driven information. For Middle East companies trading with Europe, the law introduces both opportunities for collaboration and challenges around compliance and costs.
Europe has long taken pride in its role as the world’ s digital regulator. From the GDPR to the Digital Markets Act, Brussels has taken pride in crafting rules for an era of technology that often outpaces the law. Its latest move, the EU Data Act, extends beyond privacy to encompass industrial and machinegenerated information.
Advocates say it could democratise data, foster innovation and rein in abuse. Critics warn that new burdens will be imposed on companies already struggling under the weight of existing regulations.
Yet the risks are not trivial. Machine Learning is only as reliable as the data it consumes. Malicious or lowquality inputs could corrode trust and skew outcomes. Informatica’ s Greg Hanson warned:“ Organisations need to mine machine-generated datasets accurately and apply policies across jurisdictions. Without such systems, the volume of requests from users, governments and regulators could swamp firms.”
The regional impact will be uneven. In Europe, companies have been preparing since 2023, but elsewhere, the reality is only beginning to sink in. Firms in the Middle East, for instance, will find themselves subject to the Act if they trade in Europe. Multinationals will need to juggle a patchwork of regimes, applying one set of rules in Paris and another in Dubai. For many, that means tearing up old siloed approaches and embedding compliance across the organisation.
Beyond the burden lies the promise of trust. In an era of growing consumer scepticism, companies that demonstrate transparency and restraint may enjoy an advantage. Showing customers exactly what is collected – and what is not – could differentiate brands in crowded markets.
The Act, first floated in 2023, is now in its first phase of implementation. Its central premise is straightforward: users should have access to the information their devices produce. From smart cars to wearables, companies must be transparent about what is being collected and must facilitate portability.
Service providers, particularly those offering cloud and software-as-a-service solutions, will need to ensure interoperability so that customers can switch providers without experiencing friction.
This shift could be transformative.“ If data is shared more openly, it can act as a catalyst for innovation,” argued Veeam’ s Tim Pfaelzer. He likened it to the opensource movement, where accessibility fuelled progress. With more organisations and even AI systems able to tap into broader pools of information, the hope is that collaboration and competition will thrive.
Still, sceptics worry about fragmentation and costs. More regulation may slow the pace of experimentation, particularly for smaller firms. Questions around intellectual property and trade secrets remain unresolved. Europe, critics argue, risks becoming less nimble than its rivals in the US or Asia.
Yet few doubt that data needs rules. AI’ s rise has multiplied the scale of collection and use, and leaving it unchecked is no longer an option. The EU Data Act may not be perfect, but it reflects a conviction that data belongs first to citizens not corporations. In democratising data Europe hopes to shape not just compliance but the very future of digital innovation. p
18 INTELLIGENTCIO MIDDLE EAST www. intelligentcio. com