Siemens and SAP warn the EU draft Data Act could endanger trade secrets
Siemens and SAP join US tech giants in criticizing the draft EU laws on consumer data, warning that trade secrets could be put at risk. The joint letter from German and US firms calls for safeguards allowing companies to refuse data-sharing requests if trade secrets, cybersecurity, health, and safety are at risk.
Siemens and SAP have expressed concerns that the EU draft Data Act could put their trade secrets at risk. The companies believe that the draft Data Act, which seeks to regulate data sharing and strengthen individuals’ control over their data, could lead to a situation where European companies are forced to reveal valuable intellectual property to third parties.
The draft Data Act which aims to curb the power of foreign tech companies and help the EU achieve its digital and environmental objectives has received criticisms of being too restrictive. Namely, The German companies joined the US tech giants in a letter calling for safeguards allowing them to refuse to share data where trade secrets, cybersecurity, health, and safety are at risk. They also claim that the EU companies could be forced to disclose data to non-European competitors, against whom the Data Act’s safeguards would be ineffective.
They also stated that the legislation should allow contractual freedom and permit customers and providers to agree on contracts that work best for each business case.