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Explainer

The Data Act and trade secrets: must I share data that is my trade secret?

Adopted 2026-06-16 ยท ≈ 2 min read ยท Dirk Baaijen

Not a free pass to refuse. The Data Act gives users a right to data from connected products, but protects trade secrets: you may take safeguards and, in exceptional cases, refuse where serious harm is shown.

Short answer: No, a trade secret is not a free pass to refuse data sharing. The Data Act gives users of connected products a right to the data they generate and to share it with third parties, but it protects your trade secrets at the same time. You may take safeguards and refuse only in exceptional, well-reasoned cases.

What does the Data Act regulate?

The Data Act is Regulation (EU) 2023/2854. It gives users of connected products โ€” think vehicles, telematics units and sensors โ€” a right to the data the product generates, and the right to have that data shared with third parties. As the data holder (for example a manufacturer of telematics or vehicles) you are in principle obliged to enable that access.

At the same time the regulation recognises that these data flows may contain trade secrets. Arts 4 and 5 provide an explicit protection framework for this. The starting point is a balance: access for the user, with safeguards for your legitimate interests.

How are your trade secrets protected?

The protection is graduated, not absolute:

  • Safeguards, not a blanket block. You may take the necessary technical and organisational measures to preserve your trade secrets, for example confidentiality agreements or technical safeguards around the shared data.
  • Identify and justify. The condition is that you identify the data concerned as a trade secret in advance and substantiate your claim. A general reference to "competitive sensitivity" is not enough.
  • Refusal or suspension as a last resort. Only in exceptional, well-reasoned cases may you refuse or suspend sharing, namely where serious economic harm can be demonstrated. You must notify the competent authority.

So this is not a right to refuse by default, but an exception you must justify case by case.

What should you do now?

As a manufacturer of telematics or vehicles, prepare in advance:

  • Map which data fields contain genuine trade secrets and which are simply shareable.
  • Set agreements with users and third parties on confidentiality and use of the shared data.
  • Set up a process for the exception: how you substantiate serious harm and how you notify the supervisory authority.

This way you meet your sharing obligation without giving up your actual trade secrets.

Read more: the Transport & Logistics overview. Take the scan.

Sources

  1. https://eur-lex.europa.eu/eli/reg/2023/2854/oj
    Regulation (EU) 2023/2854 (Data Act), Arts 4-5: data access and trade secrets.

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Dirk Baaijen

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Compiled and maintained by YRproject โ€” programme and project direction at the intersection of digital transformation, AI and regulation. Every factual claim is traceable to its primary source. YRproject is led by Dirk Baaijen About & method โ†’

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