EU Should Not Bar Private Businesses from Volunteering in Data-Sharing Initiatives Aimed at Promoting the Greater Good
In an AI-driven economy, data has become a valuable asset for many for-profit companies. However, much of the most granular, representative, and useful data needed to address social challenges often rests in the hands of these companies, yet remains underutilised. To bridge this gap, EU policymakers are seeking to encourage the reuse of private sector data for social good by providing regulatory clarity for firms that want to share their data.
The European Union's Data Governance Act (DGA), set to be voted on by the European Parliament next week, introduces a new concept called "data altruism." This involves two types of voluntary data-sharing for social good: individuals sharing Personally Identifiable Information (PII) for research and nonprofit organizations sharing non-PII.
To facilitate data altruism, the EU could take several regulatory measures. Firstly, supporting and promoting voluntary contractual frameworks that clarify data sharing terms and limit liabilities encourages companies to share data without fearing unfair treatment or loss of proprietary information.
Secondly, implementing fair terms mandates for business-to-business contracts reduces barriers for smaller companies to access data, fostering collaboration and social-good projects. This approach places the burden on data holders to prove fairness, making it easier for companies to participate.
Thirdly, encouraging certification schemes and codes of conduct can build trust and demonstrate good governance practices, incentivizing voluntary data sharing while reducing compliance burdens. Integrating Small and Medium Companies (SMCs) into GDPR-related certifications can be particularly beneficial.
Fourthly, simplifying regulatory requirements to reduce administrative burden can make compliance less costly and complex, thus encouraging broader data sharing participation from companies of all sizes. Assessing overlaps and clarifying the interplay between DGA and other regulations, such as the Data Act and sector-specific rules, can help achieve this.
Lastly, providing incentives for voluntary data sharing specifically aimed at social good can further encourage companies to participate. This could include public recognition, funding support, or preferential treatment in public procurement for companies that participate in data altruism or share data sets for research and societal benefits.
An example of data altruism is the Personal Genome Project, where participants share their genome sequence and health data for scientific research. Another example is Entur, a Norwegian transportation company that shares anonymized data about trips on public transportation for secondary purposes.
Finland has already taken steps in this direction. In 2019, it passed a directive that spells out conditions for the secondary use of private-sector health and social data, and established the Finnish Health and Social Data Permit Authority (Findata) to oversee the entire data-sharing process.
Location data from private sector call records and mobile apps can also help understand human mobility patterns at high spatial resolutions, spanning wide temporal periods, and across international borders. However, few private firms voluntarily share data for secondary use due to privacy and security concerns, financial costs, economic opportunity costs, and lack of regulatory clarity.
Better regulatory clarity could help many of these companies share their data for social good purposes. The EU needs to create a solution that is available to all member states to encourage the reuse of private sector data for social good, building trust and providing legal certainty, making companies more willing to participate.
- In the data economy, the European Union's Data Governance Act (DGA) introduces a practice called "data altruism," encouraging individuals to share Personally Identifiable Information (PII) for research and nonprofits to share non-PII.
- To facilitate data altruism, regulatory measures could support voluntary contractual frameworks, implement fair terms mandates for business-to-business contracts, and encourage certification schemes and codes of conduct.
- Integrating Small and Medium Companies (SMCs) into GDPR-related certifications can be particularly beneficial in fostering data altruism.
- Simplifying regulatory requirements can make data sharing less costly and complex, encouraging broader participation from companies of all sizes.
- Providing incentives for voluntary data sharing, such as public recognition, funding support, or preferential treatment in public procurement, can further encourage companies to participate.
- The Personal Genome Project and Entur, a Norwegian transportation company, are examples of data altruism, demonstrating the potential value of shared data for research and societal benefits.
- The EU needs to create a comprehensive solution that provides legal certainty and is available to all member states, encouraging the reuse of private sector data for social good while addressing privacy, security, and regulatory concerns.
