The unique relevance of interoperability in the Data Regulation(Data Act)

One of the main objectives of Regulation (EU) of the European Parliament and of the Council of 13 December 2023 on harmonised rules for fair access to and use of data (Data Regulation) is to promote the development of interoperability criteria for data spaces, data processing services and smart contracts. In this respect, the Regulation understands interoperability as:

The ability of two or more data spaces or communication networks, systems, connected products, applications, data processing services or components to exchange and use data to perform their functions.

It explicitly states that 'interoperable and high quality data from different domains increase competitiveness and innovationand ensure sustainable economic growth', which requires that 'the same data can be used and reused for different purposes and in an unlimited way, without loss of quality or quantity'. It therefore believes that "a regulatory approach to interoperability that is ambitious and inspires innovation is essential toovercome the dependence on a single provider, which hinders competition and the development of new services".

Interoperability and data spaces

This concern already existed in the European Data Strategy where interoperability was seen as a key element for the valorisation of data and, in particular, for the deployment of Artificial Intelligence. In fact, interoperability is an unavoidable premise for data spaces, so that the establishment of appropriate protocols becomes essential to ensure their potential, both for each of the data spaces internally and also in order to facilitate a cross-cutting integration of several of them.

In this sense, there are frequent standardisation initiatives and meetings to try to establish specific interoperability conditions in this type of scenario, characterised by the diversity of data sources. Although this is an added difficulty, a cross-cutting approach, integrating several data spaces, provides a greater impact on the generation of value-added services and creates the right legal conditions for innovation.

According to the Data Regulation, those who participate in data spaces and offer data or data services to other actors involved in data spaces have to comply with a number of requirements aimed precisely at ensuring appropriate conditions for interoperability and thus that data can be processed jointly. To this end, a description of the content, structure, format and other conditions of use of the data shall be provided in such a way as to facilitate access to and sharing of the data in an automated manner, including in real time or allowing bulk downloading where appropriate.

It should be noted that compliance with technical and semantic standards for interoperability is essential for data spaces, since a minimum standardisation of legal conditions greatly facilitates their operation. In particular, it is of great importance to ensure that the data provider holds the necessary rights to share the data in such an environment and to be able to prove this in an automated way

Interoperability in data processing services

The Data Regulation pays particular attention to the need to improve interoperability between different data processing service providers, so that customers can benefit from the interaction between each of them, thereby reducing dependency on individual providers.

To this end, firstly, it reinforces the reporting obligations of providers of this type of services, to which must be added those derived from the general regulation on the provision of digital content and services general regulation on the provision of digital content and services. In particular, they must be in writing:

• Contractual conditions relating to customer rights, especially in situations related to a possible switch to another provider or infrastructure.
• A full indication of the data that may be exported during the switching process, so that the scope of the interoperability obligation will have to be fixed in advance. In addition, such information has to be made available through an up-to-date online registry to be offered by the service provider.

The Regulation aims to ensure that customers' right to free choice of data service provider is not affected by barriers and difficulties arising from lack of interoperability. The regulation even contemplates an obligation of proactivity so that the change of provider takes place without incidents in the provision of the service to the customer, obliging them to adopt reasonable measures to ensure "functional equivalence" and even to offer free of charge open interfaces to facilitate this process. However, in some cases - in particular where two services are intended to be used in parallel - the former provider is allowed to pass on certain costs that may have been incurred.

Ultimately, the interoperability of data processing services goes beyond simple technical or semantic aspects, so that it becomes an unavoidable premise for ensuring the portability of digital assets, guaranteeing the security and integrity of services and, among other objectives, not interfering with the incorporation of technological innovations, all with a marked prominence of cloud services.

Smart contracts and interoperability

The Data Regulation also pays particular attention to the interoperability conditions allowing the automated execution of data exchanges, for which it is essential to set them in a predetermined way. Otherwise, the optimal operating conditions required by the digital environment, especially from the point of view of efficiency, would be affected.

The new regulation includes specific obligations for smart contract providers and also for those who deploy smart contract tools in the course of their commercial, business or professional activity. For this purpose, a smart contract is defined as a contract that

a computer programme used for the automated execution of an agreement or part thereof, which uses a sequence of electronic data records and ensures their completeness and the accuracy of their chronological order

They have to ensure that smart contracts comply with the obligations of the Regulation as regards the provision of data and, among other aspects, it will be essential to ensure "consistency with the terms of the data sharing agreement that executes the smart contract". They shall therefore be responsible for the effective fulfilment of these requirements by carrying out a conformity assessment and issuing a declaration of compliance with these requirements.

To facilitate the enforcement of these safeguards, the Regulation provides for a presumption of compliance where harmonised standards published in the Official Journal of the European Union are respected the Commission is authorised to request European standardisation organisations to draw up specific provisions.

In the last five years, and in particular since the 2020 Strategy, there has been significant progress in European regulation, which makes it possible to state that the right legal conditions are in place to ensure the availability of quality data to drive technological innovation. As far as interoperability is concerned, very important steps have already been taken, especially in the public sector public sector where we can find disruptive technologies that can be extremely useful. However, the challenge of precisely specifying the scope of the legally established obligations still remains.

For this reason, the Data Regulation itself empowers the Commission toadopt common specifications to ensure effective compliance with the measures it envisages if necessary. However, this is a subsidiary measure, as other avenues to achieve interoperability, such as the development of harmonised standards through standardisation organisations, must be pursued first.

In short, regulating interoperability requires an ambitious approach, as recognised by the Data Regulation itself, although it is a complex process that requires implementing measures at different levels that go beyond the simple adoption of legal rules, even if such legislation represents an important step forward to boost innovation under the right conditions, i.e. beyond simple technological premises.

Content prepared by Julián Valero, Professor at the University of Murcia and Coordinator of the Research Group "Innovation, Law and Technology" (iDerTec). The contents and points of view reflected in this publication are the sole responsibility of its author.