Appoint us
Connected hardware production line subject to the EU Data Act

REP27 · Data Act · IoT manufacturers

Article 3(1) · access by design · related services

Data Act for IoT manufacturers: it is a design obligation first.

Most compliance work is paperwork applied after a product exists. The Data Act is not, and that is what makes it awkward. Article 3(1) requires connected products to be designed and manufactured so that the data they generate is accessible to the user by default, easily and securely, and where relevant directly from the device. A firmware team hears that differently from a legal team, and the companies that do this cheaply are the ones where both heard it at the same time. This page is written to be forwarded to engineering.

Access by defaultMachine-readableFirmwareAPIsDocumentation

Request this service   Ask a question

What has to be built

The design and disclosure steps a connected product maker must take under the Data Act
The design and disclosure steps a connected product maker must take under the Data Act

Step one is the expensive one and it is also the one with the longest lead time, because it lands in firmware and in the cloud backend rather than in a policy document. Everything else follows from it in weeks.

Four mistakes we see in product teams

Four common mistakes connected product teams make under the Data Act
Four common mistakes connected product teams make under the Data Act

An engineering reading of Article 3

The wordingWhat it means in the build
Accessible by defaultNo paid tier, no support ticket, no special request to reach your own data
Easily and securelyAuthenticated, documented, and reachable without reverse engineering
Free of chargeFor the user's own access. Charges may exist only for third-party recipients
ComprehensiveThe readings, not a summary view built for the app
Structured, commonly used, machine-readableJSON, CSV, a documented API. Not a PDF, not a screenshot, not a dashboard
Where relevant, directly from the deviceA local interface where the architecture allows it, not only through your cloud
Same quality as available to the holderThe resolution and frequency you use internally, not a downsampled copy
Metadata to interpret itUnits, timestamps, sensor identifiers, schema. Data nobody can read is not access
The row that causes most rework is the last but one. Teams often expose a public API at one sample per minute while internal analytics runs at one per second. That gap is exactly what the regulation closes.

A realistic build order

  1. Inventory what the device produces

    Every sensor, every counter, every event, with frequency, retention and where it lands. Two days of work that everything else depends on.

  2. Split readings from derivations

    Readings are the user's to reach; your models and scores are not. Draw that line in the data dictionary, not in a meeting.

  3. Expose an authenticated export

    A documented endpoint returning the readings in a machine-readable format, with the metadata to interpret them.

  4. Add third-party transmission

    The user names a recipient; you deliver. Tokens, scopes and revocation, which is the same work you already do for integrations.

  5. Write the disclosure

    The pre-contractual information, in the manual and on the product page, in the languages you sell in.

  6. Appoint the representative

    If you have no entity in the Union, a written mandate so requests reach somebody who answers.

What it costs to get wrong

Rework at scale

Retrofitting access into shipped firmware is the most expensive version of this project, and it is what happens when the design duty is discovered late.

Procurement friction

European buyers, especially industrial ones, have started asking how a device satisfies Articles 3 to 5 before signing.

Enforcement

Penalties are set nationally and must be effective, proportionate and dissuasive. Where personal data is involved, the GDPR runs alongside.

Aftermarket lock-out

Repairers and analytics providers are the intended beneficiaries. Blocking them is the behaviour the regulation was written to end.

Reputation with your own users

Refusing access to a customer's own machine data reads badly, and increasingly it reads unlawfully.

The cheap version

Doing it at design time, once, for the next product generation. That is the whole argument for reading this now.

Where the other regulations meet this one

A connected device rarely has only one European obligation attached, and the overlaps are worth knowing before four teams solve them separately.

RegulationWhat it adds for a connected device
GDPRPersonal data in the readings: lawful basis, notice, and the Article 27 representative if you are outside the Union
Cyber Resilience ActSecurity requirements, vulnerability handling and, from 11 September 2026, reporting of actively exploited vulnerabilities
GPSRPhysical safety and the Article 16 responsible person named on the product
Radio Equipment DirectiveWhere the device has a radio, including delegated acts on cybersecurity
Ecodesign and energy labellingWhere applicable to the product category, with their own documentation

What engineering usually asks back

When this lands with a firmware or platform team, the same five objections come up. They are reasonable, and four of them have straightforward answers.

The objectionThe answer
"Our device has no capacity for a local API"Then access is provided by the data holder on request. Direct access is required where relevant and technically feasible, not always
"Full-resolution export will cost bandwidth"Data of the same quality available to you, delivered on request rather than streamed continuously. Design the export accordingly
"Customers will hand data to competitors"Recipients cannot use it to develop a competing connected product, and gatekeepers are excluded outright
"Our schema is a trade secret"Metadata needed to interpret the data has to travel with it. Genuine secrets are protected with safeguards, not by withholding units and timestamps
"We ship globally, not just to the EU"Then the duty attaches to units placed on the Union market. Most teams build once rather than maintain two firmware lines

The last row is the decision that quietly determines the cost. Maintaining a European variant of firmware and a rest-of-world variant looks cheaper in the sprint and is more expensive for the life of the product. Almost every manufacturer that has been through this ends up building the access route once, for everyone, and treating the regulation as a specification rather than a jurisdiction.

A note on timing and product generations

Products already shipped

Retrofitting is hard and sometimes impossible. Where direct access cannot be added, the data holder route under Article 4 carries the obligation.

Products in development

This is the cheap moment. Adding an authenticated export to a design that has not shipped costs a fraction of adding it later.

Related services

Portals and apps are easier to change than firmware and are usually where the first compliant export appears.

Documentation

The pre-contractual information can be written this month regardless of where the engineering stands, and it is what a regulator sees first.

The short version for a product team

Design the product so the user can reach its data by default, easily, securely and in a machine-readable format, directly from the device where that makes sense. Publish what the product generates before the sale. Build a route for the user to obtain the data and a route to send it to someone they name. Keep your inferences; hand over the readings. And if no entity of yours is established in the Union, sign the representative mandate so requests arrive somewhere that answers within a deadline rather than at an inbox in another time zone.

Who owns this internally

The most common reason a connected product company is late is not disagreement, it is that nobody is responsible. The work spans four teams and belongs entirely to none of them.

TeamWhat they own here
Firmware and hardwareWhether data can be read from the device, and at what resolution
Platform and cloudThe export endpoint, authentication, third-party transmission and rate limits
Product and documentationThe pre-contractual information, the manual and the product page
Legal and complianceTrade secret identification, safeguards template, terms with recipients
CommercialWhat happens to aftermarket revenue when third parties can receive the data

Name one owner across the five, give them a fortnight to produce the data inventory, and the rest becomes ordinary delivery work. Without that, each team assumes another has it, and the first request from a customer finds an organisation that has never discussed the question.

Two questions about competition, answered plainly

"Are we handing our market to third parties?"

Partly, and deliberately. The regulation exists to open repair, maintenance and analytics around connected products, and that was the stated intention rather than an accident. What it does not permit is a recipient using your data to build a competing connected product, and designated gatekeepers are excluded from receiving it at all. The commercial answer that works is to compete on the service rather than on access to the machine's own readings, because the readings are no longer defensible ground.

"Can we at least charge for it?"

Not the user, for their own data. With third-party recipients, reasonable and non-discriminatory compensation can be agreed, and for small recipients it is limited to the costs of making the data available. Pricing an export like a professional services engagement is the fastest way to attract a complaint, and the amounts involved rarely justify it.

What to tell your firmware team, in one page

This section exists to be forwarded. It is the regulation translated into work items, with no legal vocabulary in it.

Work itemAcceptance criterion
Data dictionaryEvery field the device produces, with units, frequency, retention and whether it is a reading or a derivation
Authenticated export endpointReturns readings for a date range in JSON or CSV, with a documented schema
Same resolution as internalThe export matches what internal analytics consumes, not a downsampled copy
Local access where feasibleA documented route to read data from the device without our cloud, where the architecture allows
Third-party deliveryThe user authorises a recipient; tokens are scoped and revocable
No paywall on own dataAccess is available on the base tier, without a support ticket
Deletion pathThe user can delete data where the regulation allows, with confirmation
DocumentationPublic API docs a competent integrator can use without contacting support

Everything on that list is ordinary product work. What makes it a compliance project is discovering it after the hardware has shipped, which is why the eight rows are worth reading now rather than in a year.

The short version for a manufacturer

Design so the user can reach the readings, say so before the sale, build a route to send them to a third party the user names, keep your derivations, protect genuine secrets with safeguards rather than refusals, and if no entity of yours is established in the Union, sign the representative mandate so requests reach somebody who answers. The regulation is demanding at design time and undemanding afterwards, which is the opposite of most compliance work and the reason it rewards acting early.

Product team designing data access into a connected device
Product team designing data access into a connected device
Prague seat of the representative appointed by an IoT manufacturer

Questions we are actually asked

Does the Data Act really change product design?

Yes. Article 3(1) requires products to be designed so that data is accessible to the user by default. It is not a documentation exercise.

What format do we have to provide?

Structured, commonly used and machine-readable, with the metadata needed to interpret it, at the same quality available to you.

Can we charge users for access to their own data?

No. Access by the user is free. Compensation is possible only with third-party recipients, on the regulation's terms.

Do we have to expose data locally on the device?

Where relevant and technically feasible, yes, directly from the product. Where it is not, the data holder makes it available on request.

Are derived analytics covered?

No. Data you inferred or derived from readings stays yours.

What about trade secrets in the readings?

Identify them, propose safeguards, and refuse only in the exceptional cases the regulation allows, with reasons.

Do we need to support third-party transmission?

Yes, at the user's request, to a recipient they name, subject to the limits on gatekeepers and competing products.

Are micro and small enterprises exempt?

Largely, from the sharing obligations, with a transitional position for enterprises that recently grew beyond the threshold.

Does the regulation apply to industrial machinery?

Yes. Business users have the same access rights, and industrial data is often entirely non-personal, so only the Data Act applies.

What if the device has no cloud component?

Then direct access from the product is the route, and the design duty applies just the same.

Do we need a representative in the Union?

If no entity of yours is established there, yes: a written mandate under the regulation, separate from Article 27 GDPR.

How does this interact with the Cyber Resilience Act?

They apply together. The CRA governs security of products with digital elements; the Data Act governs access to the data they produce.

Can we require users to accept terms before access?

You can set fair, non-discriminatory conditions, but you cannot contract away the right itself. Unfair unilateral terms are not binding.

What if a competitor asks for the data through a user?

Third parties cannot use data received to develop a competing connected product. That limit is in the regulation.

Does it apply to products sold before September 2025?

The obligations attach to products placed on the market and to related services, with design duties applying to products placed on the market after the relevant dates. Check the phasing for your category.

What penalties apply?

Set by Member States, effective, proportionate and dissuasive, with GDPR penalties running alongside for personal data.

How fast is the representative mandate?

Signed within 24 hours of an intake call confirming your role and the Member State.

What is not included in the mandate?

Product design, building the export, negotiating with recipients, and legal advice on national implementing measures.

Related: what users can obtain · the representative mandate

Design first, mandate in 24 hours

Europe Services, SE in Prague as your Data Act representative, so that user and authority requests reach a desk in the Union while your team builds the access route.

Request this service