Clouds Connecting Europe: Interoperability in the EU Data Act

Abstract

Interoperability, describing the ability of systems to work together, is a cornerstone of Europe’s vision for a connected digital economy, and the Data Act takes a bold step in this direction. Articles 33-35 of said Act contain far-reaching interoperability mandates for data spaces and data processing services, including cloud services. However, the provisions’ unclear language and structural complexities present interpretative challenges. For instance, the meaning of central terms like “data space” and “data processing service” remain ambiguous. To address these challenges, we propose an effects-oriented method emphasising an interdisciplinary analysis of the regulated industry and alignment of various legislative objectives with the effects of interoperability as a policy tool.

Applying this method, we find that the term “data space” must be interpreted restrictively in light of the public interest objectives of the relevant provision, namely as a platform that enables broad data sharing. Similarly, we argue that understanding the term “data processing service” is predicated on the insight that the technical terms used in the statutory definition are reflections of specific economic effects which characterize cloud markets (e.g. lock-in effects and the importance of amortisation). In order to reliably apply the definition, the technical terms must be evaluated in light of these economic effects as a set of interdependent factors in a global assessment, whereby a stronger degree in one dimension can offset weaker degrees in other dimensions.

We argue that this stringent effects-oriented approach is necessary for the Data Act to achieve its goals of strengthening Europe’s digital economy by enabling seamless cloud environments and shaping a more open and innovative digital landscape.