{"id":114436,"date":"2026-07-30T19:18:09","date_gmt":"2026-07-30T17:18:09","guid":{"rendered":"https:\/\/industry-science.com\/?post_type=article&p=114436"},"modified":"2026-08-12T18:13:10","modified_gmt":"2026-08-12T16:13:10","slug":"european-single-market-data","status":"publish","type":"article","link":"https:\/\/industry-science.com\/en\/articles\/european-single-market-data\/","title":{"rendered":"The European Dream of a Single Market for Data"},"content":{"rendered":"\n

European regulation of the data economy has gained significant momentum since the adoption of the General Data Protection Regulation (GDPR) in 2016. While the GDPR primarily addressed rights protections for natural persons, the EU has also, at least since the 2020 European strategy for data [1], clearly been promoting the EU-wide access to and exchange of data. <\/p>\n\n\n\n

This marks a regulatory paradigm shift from a primarily protective approach to one more focused on data utilization. The aim is to significantly increase the EU\u2019s share in the global data economy with the creation of a European data space\u2014a single market for data. So-called Common European Data Spaces are designed to remove existing barriers to data exchange and encourage data sharing both within and across sectors [1]. <\/p>\n\n\n\n

The Data Governance Act (DGA) and the Data Act (DA) introduced the first horizontal\u2014that is, cross-sectoral\u2014regulations in this area. In addition, the Regulation on the European Health Data Space (EHDS) already provides an initial set of specific regulations. In numerous other domains, such as mobility and industrial production, the first data spaces and accompanying regulatory approaches are currently emerging. Together, they have the potential to bring about lasting change in the European digital economy [2]. <\/p>\n\n\n\n

However, the success of the data strategy depends largely on whether data sharing is sufficiently incentivized. The removal of existing legal uncertainties and structural barriers are both key to this. The Commission has also identified complex legal provisions and regulatory fragmentation as major obstacles to data sharing [3]. <\/p>\n\n\n\n

Against this backdrop, the question arises whether Common European Data Spaces can effectively remove these obstacles and thereby enable comprehensive data sharing. This article examines this question in three steps. First, selected legal obstacles are presented. Subsequently, the concept of the Common European Data Space is explained, and the extent to which the obstacles can be overcome is analyzed using the EHDS as a case study. <\/p>\n\n\n\n

The article adopts a conceptual and legal-scholarly approach. The analysis is based on relevant EU legal acts and selects barriers based on their relevance in legal scholarship. The aim is not a comparative law or empirical study, but rather a systematic evaluation of the EHDS with regard to removing barriers to data sharing in industrial data spaces.<\/p>\n\n\n\n

Selected legal obstacles<\/strong><\/h2>\n\n\n\n

One major obstacle to data sharing stems from data\u2019s inherent characteristics. The term \u201cdata\u201d is to be understood here, in line with Art. 2 No. 1 DA, as \u201cany digital representation of actions, facts, or information.\u201d Data is non-rivalrous and non-depletable, which is why\u2014unlike physical economic goods\u2014it can be used simultaneously by multiple parties and reproduced at will [4]. <\/p>\n\n\n\n

These characteristics make it difficult to establish exclusive rights to data [5]. An exclusive right to data comparable to copyright or the protection of trade secrets does not exist, despite calls for it in legal scholarship [6]. At the same time, recourse to existing rights is possible only to a limited extent. For example, the Database Directive (Directive 96\/9\/EC) protects only the database as a whole but not individual data items [7]. <\/p>\n\n\n\n

Investments in data generation are primarily safeguarded by contractual provisions and trade secrets protection [7]. When data is disclosed to third parties, however, these control mechanisms are difficult to maintain. Furthermore, the protective effects of contracts are generally limited to the relationship between the contracting parties. Combining third-party data with one\u2019s own to gain additional insights is naturally of great interest, but companies that use third-party data are often reluctant to share theirs [8]. <\/p>\n\n\n\n

When sharing personal data, additional hurdles arise under data protection law. The complex interplay between the GDPR and the European strategy for data gives rise to legal uncertainties, which are further exacerbated by inconsistent implementation across member states and fragmentation caused by national law [3]. <\/p>\n\n\n\n

The lack of sector-specific regulation at the level of EU law also acts as a barrier to EU-wide data exchange in many areas. For example, the broad interpretation of the term \u201csensitive personal data\u201d often results in prohibition under Article 9(1) of the GDPR [9]. Without sector-specific regulations to enable an appropriate balancing of interests, none of the exceptions provided for in Article 9(2) of the GDPR can be invoked. As a result, special exceptions for AI systems were provided for in the draft Digital Omnibus Regulation [10]. <\/p>\n\n\n\n

Moreover, the sharing of personal data is typically accompanied by a change in purpose, which\u2014in the absence of consent or specific regulations\u2014requires a compatibility test under Article 6(4) of the GDPR. The abstract requirements of this test lead to further legal uncertainties that are likely to deter companies from sharing their data. <\/p>\n\n\n\n

The concept of Common European Data Spaces<\/strong><\/h2>\n\n\n\n

Common European Data Spaces should address these and other obstacles. The concept of Common European Data Spaces was first outlined in detail in the European strategy for data [1], legally enshrined in the DGA and DA, and further specified in accompanying documents [11]. According to Art. 30(h) of the DGA and Art. 33(1) of the DA, Common European Data Spaces are \u201cpurpose- or sector-specific or cross-sectoral interoperable frameworks for common standards and procedures for the sharing or joint processing of data.\u201d <\/p>\n\n\n\n

A concrete legal framework or definition under EU law for the umbrella term \u201cdata space\u201d is currently lacking [12]. For conceptual clarification, one can refer to the definition provided by the Gaia-X<\/a> Hub Germany, according to which a data space is a \u201cfederated, open infrastructure for sovereign data exchange based on common agreements, rules, and standards\u201d [13]. <\/p>\n\n\n\n

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\"Figure
Figure 1: Sectors of Common European Data Spaces.<\/em><\/figcaption><\/figure>\n<\/div>\n\n\n\n
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A data space should not be equated with a traditional \u201cdata room\u201d in the context of corporate acquisitions. Rather, it should resemble the Internet, enabling decentralized data exchange based on common standards and protocols. Common European Data Spaces are additionally grounded in the values of the European Union [2], where the Union pursues a flexible regulatory approach and intervenes only where there is a specific sectoral need.<\/p>\n\n\n\n

The EHDS was established as the first comprehensive Common European Data Space because such a need became evident in the healthcare sector [14]. <\/p>\n<\/div>\n<\/div>\n\n\n\n

Now, the EHDS serves as a blueprint for other data spaces [15]. It demonstrates how the secondary use of even highly sensitive data such as electronic health data can be regulated for purposes of public interest. <\/p>\n\n\n\n

Under the EHDS framework, health data holders are obliged to make data available when authorization is granted by an access body. The secure processing environment must be in accordance with Art. 2 No. 20 of the DGA and meet the specific requirements of the EHDS, such as anonymization or pseudonymization. Downloading personal electronic health data is not permitted and processing is allowed only for specific purposes. <\/p>\n\n\n\n

\"Figure
Figure 2: Structure of the European Health Data Space (EHDS).<\/em><\/figcaption><\/figure>\n\n\n\n

The potential of Common European Data Spaces <\/strong><\/h2>\n\n\n\n

The EHDS\u2019 obligation to make data available for privileged secondary use purposes addresses key legal obstacles. It limits data holder\u2019s control, while a secure processing environment prevents data leakage and uncontrolled disclosure. In this way, both the interests of data holders and\u2014in the case of personal data\u2014the rights of data subjects are taken into account. Conceptually, the EHDS thus aims to strike a balance between data use for the benefit of society and the data sovereignty of data holders and natural persons.<\/p>\n\n\n\n

Nevertheless, a secure processing environment cannot completely prevent the extraction of information. An obligation to provide data can therefore, even with technical safeguards in place, represent a significant burden for data holders and a risk for data subjects. Hence, the limitation to privileged purposes. <\/p>\n\n\n\n

Since such privileged purposes do not exist in all sectors\u2014i.e. in purely economic sectors\u2014the design of the EHDS cannot be readily applied to the entire economy. However, Articles 3 et seq. of the DA offer the expansion of disclosure obligations from privileged purposes to identified market disruptions. Accordingly, users of IoT devices may compel the data holder to disclose or transfer data generated through device use, which the data holder can only refuse to a limited extent, for example, when trade secrets are involved. <\/p>\n\n\n\n

These provisions are particularly significant for industrial data spaces and, consequently, for initiatives such as Manufacturing-X, which aim to enable a sovereign and interoperable exchange of production and machine data along industrial value chains [16]. The disclosure obligations under Art. 3 et seq. DA can, in principle, reduce barriers to the exchange of machine data and thereby promote exchange along the value chain. <\/p>\n\n\n\n

Numerous data categories remain nevertheless uncovered by disclosure obligations. To the extent that market distortions continue to create barriers to data exchange, it appears appropriate to introduce further sector-specific disclosure obligations even in the purely economic sphere, such as in industrial data spaces.<\/p>\n\n\n\n

In addition to the statutory obligation to make data available, adopting the EHDS concept of a secure processing environment in industrial data spaces could be one way to reduce barriers to data exchange in cases of voluntary data sharing. Drawing on Art. 60 et seq. of the EHDS, participation in an industrial data space could be guided by binding rules of use that supplement the contractual obligations. In conjunction with a sanctions regime to penalize unauthorized use or disclosure\u2014fines, contractual penalties, or exclusion from the data space\u2014control rights for data holders could be established so that the deficit is at least functionally compensated.<\/p>\n\n\n\n

The EHDS also demonstrates how data protection hurdles can be addressed through Common European Data Spaces. The granting of data authorization ensures that participating parties meet the requirements of Article 9(2) of the GDPR and that data exchange purposes conform with Article 6(4) [15]. This presupposes that the conditions set forth in the EHDS regulations are met, though it is not yet clear whether these will indeed ensure an appropriate balancing of interests. <\/p>\n\n\n\n

Depending on the regulatory detail, sector-specific guidelines might even enable laypeople to assess data protection requirements without comprehensive legal advice, which could benefit SMEs in particular. On the other hand, the introduction of sector-specific regulations carries the risk of fragmentation-induced complexity, which could manifest, for example, in difficulties defining boundaries. The EU\u2019s current reform efforts aim to remedy this by significantly reducing existing complexity without lowering the level of protection.<\/p>\n\n\n\n

The provisions of the EHDS regarding cross-sectoral data exchange remain vague and are deferred to future acts enabled by the powers granted to the Commission, such as those in Article 75(12) of the EHDS. Consequently, it is not yet possible to assess whether cross-sectoral data exchange in Common European Data Spaces will in fact be feasible.<\/p>\n\n\n\n

Data spaces as a means of realizing the European single market for data?<\/strong><\/h2>\n\n\n\n

The EHDS shows that data spaces can, in theory, break down certain legal barriers and at least in part incentivize data sharing. However, the application of these regulations to the data economy as a whole is limited. In particular, their restriction to privileged public purposes limits their applicability to purely economic contexts. <\/p>\n\n\n\n

The introduction of sector-specific data-sharing obligations could eliminate barriers to data exchange caused by market distortions. At the same time, it is clear that sector-specific regulations alone are not sufficient to achieve the objectives of the European strategy for data in industrial data spaces, which is why supplementary adjustments and reforms to the existing legal framework are necessary.<\/p>\n\n\n\n

\"Figure
Figure 3: A networked economy spanning sectors and technologies.<\/em><\/figcaption><\/figure>\n\n\n\n

Furthermore, it remains to be seen whether data spaces can be implemented in practice at all. The success of implementation will be a decisive factor in determining whether the European Commission\u2019s vision of a European single market for data can become a reality beyond the healthcare sector.<\/p>\n\n\n\n

This article was written as part of the \u201cEDWI\u201d project (grant number: 02J24A110), which is funded by the Federal Ministry of Research, Technology, and Space.<\/em><\/p>\n\n\n\n

The original German version of this article can be accessed via DOI: 10.30844\/I4SD.26.4.2<\/a><\/strong><\/p>\n

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