On Friday 12 September, the EU Data Act comes into force, introducing new requirements for data sharing across Europe. While Cisco is ready for these changes, we see practical ways to improve the rules. Targeted regulatory simplification is essential if Europe is to fully seize the opportunities of data-driven innovation and AI.
Simplifying complex and overlapping rules is not just about reducing red tape. It’s about creating a regulatory environment where businesses of all sizes can innovate confidently, invest in new technologies, and deliver value to society. We encourage the European Commission to leverage its upcoming Data Union Strategy, as a chance to address real barriers in Europe’s data landscape, particularly within the Data Act itself and GDPR. Simplifying these regulations will help create a clearer, more efficient environment for innovation and growth.
Compliance: Cisco’s Commitment to Transparent and Open Data Sharing
Cisco has updated its legal terms and transparency processes (Contract Stack and Transparency Stack) to keep pace with Europe’s changing data rules. These updates help make it even clearer how data is shared and managed with our customers and partners, and strengthen legal protections for everyone involved.
We’re also proud to champion open and standardized ways of sharing data, which are essential for the development of responsible AI. This approach not only encourages wider data sharing but also helps maintain the quality and reliability of data, two foundations for a healthy digital economy and trustworthy AI solutions.
Remove Compulsory Sharing of Trade Secrets
The Data Act’s requirement for compulsory sharing of trade secrets (Article 4) risks undermining innovation and competitiveness. Trade secrets are valuable because they are confidential. Forcing disclosure, even with promises of confidentiality, can erode their value and put businesses at a disadvantage.
The current rules require owners to prove serious economic damage before they can refuse access, which weakens protection compared to other forms of intellectual property. Trade secret holders should have the final say on whether to share sensitive information, as once disclosed, the advantage can be lost forever.
Simplify Trusted Data Transfers
The Data Act and Data Governance Act currently introduce overlapping and complex requirements for transferring non-personal data, especially for companies handling mixed data sets. Data privacy and security must always come first, but rules for transferring data across borders should be balanced and based on actual risks. When companies work with datasets that include different types of data, following GDPR rules on cross-border data transfers should be enough, without needing to meet requirements from the Data Act on top. These added layers of regulation impose significant administrative burdens without a corresponding increase in security or risk management.
By focusing on regulatory simplification and targeted reform, the Commission can strengthen Europe’s position in AI and digital innovation. Simplified data rules, better protection for trade secrets, and a balanced approach to international data flows will help European companies compete globally, boost innovation, and ensure that the benefits of the digital economy are shared by all.
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