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The European Data Governance Act is a game-changer for the data-driven economy in the EU. Malta is taking a leading role in implementing this framework. What is the role of the Malta Digital Innovation Authority in this landscape?
Data plays a significant role in driving the modern economy and fuels innovation in every industry, ranging from scientific research to healthcare solutions. It has the power to promote innovative services, reduce operational costs, and generate better data-driven public policies. The European data-sharing market has enormous potential, as over 80% of industrial data remains unused. Fostering trust in data transactions, aligning economic incentives, and promoting technology enablers are crucial to unlocking that opportunity.
In this regard, under the European Strategy for Data, the European Union published the Data Governance Act (DGA). The regulation aims to establish a common framework for sharing personal and non-personal data across Europe. The goal is to promote the free flow of data and increase its availability for various societal purposes.
DGA will be a part of Malta’s broader digital innovation framework, which already includes a Data Strategy for the Public Sector and an AI National Strategy and Vision. Implementing this act is pivotal as it is expected to enhance data availability, an essential component for AI development, public sector services and business solutions. Malta’s Data Strategy, while defining data as an asset of the digital economy that brings enormous economic and social potential, highlights the need to guarantee its quality, accountability, transparency, and security. A legal framework such as the DGA works as an enabling block to create confidence and trust to sustain data sharing and reuse while also guiding businesses and society in navigating the realm of the data economy.
Apart from rules pertaining to the reuse of certain categories of protected data held by public sector entities, this Act introduces a set of rules for data intermediation services as well as for data altruistic purposes. Two key players are at the centre of this scenario: Data Intermediation Services and Data Altruistic Organisations. They act as impartial intermediaries that connect data holders with data users. Their role is pivotal in enhancing trust in data sharing and making valuable data available. Data Intermediation Services must notify their services to the competent Authority, while Data Altruistic Organisations can voluntarily register themselves as such. Once registered or notified, they can use an EU label in their written and spoken communications that demonstrate their compliance with DGA standards.
To qualify as Data Intermediation Services, organisations must offer services to facilitate commercial relationships for the purpose of sharing data. This embodies: (1) linking identifiable natural persons to whom personal data subjects, data holders and data users using technical, legal or other means, (2) enabling bilateral or multilateral exchanges of data or the creation of platforms or databases that allow for the exchange or joint use of data, and (3) establishing specific infrastructure for the interconnection of data holders with data users. Examples of Data intermediation include data marketplaces, data sharing pools, Personal Information Management Systems (PIMS), data cooperatives, data trusts and data unions.
To qualify as a Data Altruistic Organisation, it must be an organisation that voluntarily shares personal or non-personal data for the benefit of public interest and research without expecting any direct financial compensation, except for basic compensation to cover the costs of data sharing. Data sharing is based on the consent of data subjects or the permissions of data holders and it may be used for various purposes, such as policy-making and scientific research. Examples of such organisations include platforms allowing individuals to share data voluntarily or arrangements facilitating anonymous data sharing.
Compliance with the regulation significantly benefits all registered entities in this data-driven economy. Data Intermediation Services can enhance trust and credibility in their data sharing practices, access market opportunities across Europe, mitigate uncertainties and risks with a clear framework and generate revenue from service fees. Similarly, Data Altruistic Organisations can capitalise on the credibility of registration to attract donors, supporters and partners who align with their mission, enhance the visibility of their work and improve operational efficiency and clarity within their organisation through standardised data-sharing protocols.
The Malta Digital Innovation Authority (MDIA) and the Data Governance Council work together to implement the Data Governance Act (DGA) in Malta. MDIA is responsible for registering Data Altruism Organisations and Data Intermediation Services, leveraging its track record in supporting digital innovation businesses. Currently, the Authority already provides a Technology Assessment Recognition Framework (TARF) that recognises various technologies based on international standards and industry best practices. Furthermore, it offers support to help start-ups and businesses navigate the digital landscape, while also leading the development and oversight of the National AI Strategy.
By registering in Malta, organisations and businesses may access guidance and support from the competent Authority, which can help navigate legal and regulatory requirements, promote best practices and address any challenges or concerns.
Interested parties are welcome to contact MDIA to understand notification requirements. The registration process aims to establish maximum confidence with minimal administrative burden for organisations, in line with the Authority’s commitment to enhancing the uptake of secure and optimal digital innovation.
Authors: Luiara Cássia – intern and Gavril Flores – Chief Strategy, Policy and Governance Officer