EUROPEAN UNION THE EUROPEAN PARLIAMENT THE COUNCIL Brussels, 4 May 2022 (OR. en) 2020/0340 (COD) PE-CONS 85/21 TELECOM 463 COMPET 912 MI 948 DATAPROTECT 294 JAI 1422 CODEC 1651 LEGISLATIVE ACTS AND OTHER INSTRUMENTS Subject: REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on European data governance and amending Regulation (EU) 2018/1724 (Data Governance Act) PE-CONS 85/21 HOU/RC/vm TREE.2 EN REGULATION (EU) 2022/… OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of … on European data governance and amending Regulation (EU) 2018/1724 (Data Governance Act) (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Economic and Social Committee1, After consulting the Committee of the Regions, Acting in accordance with the ordinary legislative procedure2, 1 2 OJ C 286, 26.7.2021, p. 38. Position of the European Parliament of 6 April 2022 (not yet published in the Official Journal) and decision of the Council of …. PE-CONS 85/21 HOU/RC/vm TREE.2 1 EN Whereas: (1) The Treaty on the Functioning of the European Union (TFEU) provides for the establishment of an internal market and the institution of a system ensuring that competition in the internal market is not distorted. The establishment of common rules and practices in the Member States relating to the development of a framework for data governance should contribute to the achievement of those objectives, while fully respecting fundamental rights. It should also guarantee the strengthening of the open strategic autonomy of the Union while fostering international free flow of data. PE-CONS 85/21 HOU/RC/vm TREE.2 2 EN (2) Over the last decade, digital technologies have transformed the economy and society, affecting all sectors of activity and daily life. Data is at the centre of that transformation: data-driven innovation will bring enormous benefits to both Union citizens and the economy, for example by improving and personalising medicine, providing new mobility, and contributing to the communication of the Commission of 11 December 2019 on the European Green Deal. In order to make the data-driven economy inclusive for all Union citizens, particular attention must be paid to reducing the digital divide, boosting the participation of women in the data economy and fostering cutting-edge European expertise in the technology sector. The data economy has to be built in a way that enables undertakings, in particular micro, small and medium-sized enterprises (SMEs), as defined in the Annex to Commission Recommendation 2003/361/EC1, and start-ups to thrive, ensuring data access neutrality and data portability and interoperability, and avoiding lock-in effects. In its communication of 19 February 2020 on a European strategy for data (the ‘European strategy for data’), the Commission described the vision of a common European data space, meaning an internal market for data in which data could be used irrespective of its physical storage location in the Union in compliance with applicable law, which, inter alia, could be pivotal for the rapid development of artificial intelligence technologies. 1 Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36). PE-CONS 85/21 HOU/RC/vm TREE.2 3 EN The Commission also called for the free and safe flow of data with third countries, subject to exceptions and restrictions for public security, public order and other legitimate public policy objectives of the Union, in line with international obligations, including on fundamental rights. In order to turn that vision into reality, the Commission proposed establishing domain-specific common European data spaces for data sharing and data pooling. As proposed in the European strategy for data, such common European data spaces could cover areas such as health, mobility, manufacturing, financial services, energy or agriculture, or a combination of such areas, for example energy and climate, as well as thematic areas such as the European Green Deal or European data spaces for public administration or skills. Common European data spaces should make data fi