Unlocking Data Democracy: Denodo and the European Data Act
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The European Data Act (EDA), which goes into effect on September 12, marks a key step in building an equitable, interoperable, and sustainable data economy in Europe. It aims to rebalance power in the digital ecosystem by promoting fair, transparent, and secure access to data generated by connected devices, as well as seamless, secure data sharing among companies, citizens, and public institutions, so that SMEs, public entities, and citizens have equal access to the benefits of leveraging data. Currently, a significant portion of the data generated within the EU remains unused or concentrated in the hands of a few dominant players, limiting competition and curbing innovation. The European Data Act (EDA) therefore aims to make data a shared good by promoting the creation of a transparent, interoperable and secure data sharing ecosystem.

One of the key concepts introduced by the regulation is that of fair and transparent access to data generated by connected objects in the Internet of Things (IoT). The European Data Act (EDA) stipulates that the user of a connected device, whether an individual or an organization, has the right to access the data that that device generates and, if he or she wishes, to share it with third parties. This principle extends the concept of data portability introduced by the GDPR, adapting it to the era of IoT and artificial intelligence.

Another central element of the EDA is the promotion of data use by the public sector in situations of general interest (aka “business-to-government data sharing,” or B2G). The EDA requires private companies, under certain circumstances and with appropriate safeguards, to make their data available to government to deal with emergencies, extraordinary events, or public planning needs.

The main goals of the EDA can be summarized as:

  • Facilitate the movement of data within the EU by breaking down technical and legal barriers
  • Establish fair access to data, with clear rules for users, producers, and third parties
  • Stimulate the emergence of new business models based on data sharing
  • Strengthen the digital sovereignty of European citizens and organizations
  • Improve transparency, security and trust through shared governance rules

Through the EDA, regulators are striving to establish a single data market, a digital infrastructure through which data can flow smoothly between different sectors, territories, and actors, to generate economic and social value. In this sense, the EDA represents a fundamental step toward a data democracy, in which any actor – public or private – can contribute to and benefit from the circulation of data, while respecting the principles of ownership, accountability, and sustainability.

However, realizing the goals of the EDA requires a major overhaul of the traditional approach to data management, which relies on the physical replication of data from multiple systems into a single repository, as it often results in fragmented, inaccessible, and poorly governed data. To make the EDA vision a reality, organizations must equip themselves with data management and sharing models that are flexible, scalable, and compliant with the rules set forth in the regulation. Last but not least, organizations need to define the ideal technology base for implementing the EDA’s guiding principles.

Denodo, Serving the European Data Act (EDA) with a Logical Data Management Approach

The EDA is a highly pervasive initiative that, through its directives, will impact the organizational, legal, and cultural domains of many organizations. It establishes the need for a shift-in-pace on the path toward a true data economy, one that is equitable, without imbalances in power dynamics, and one in which everyone has equal opportunities to access and use data.

When a transformation is this profound, the role of technology must be clearly understood and properly positioned. It should not be given an excessively central role, risking losing sight of the essence of the transformation itself, but neither should it be relegated to the background, as this would ignore the enabling role technology plays. If not properly guided, this role alone could determine the failure of the entire initiative.

For an enabling role such as this, and for scenarios in which data sharing is central, as is the case with the EDA, as it involves multiple public and private entities and requires access to be available to virtually anyone in need of data, the adoption of logical data architectures, such as the Denodo Platform, becomes essential. Logical architectures provide the simplicity, flexibility, security, and efficiency that are required in complex environments.

A data economy based on democratic principles cannot do without a technological foundation that enables everyone to easily exercise their data-related rights. If a right is not easily exercisable, then it becomes a privilege. This ease of access must permeate the entire data lifecycle, from the moment data needs to be made available, to its actual use, at which point its true value is unlocked.

This harmony, necessarily consistent across all stages of the data lifecycle, is the result of a not-so-trivial alchemy on which logical architectures are based. Specifically, the Denodo Platform is built on an approach that avoids data duplication, relying instead on data virtualization and intelligent metadata management, enabling data from multiple sources to be unified without compromising the autonomy and governance of the data providers.

The essence of logical architectures is the logical-physical separation of data, and the resulting concept of “connecting” to data sources. This is different from the traditional extract, transform, and load (ETL) approach, which involves replicating data into a centralized access point. Logical architectures make the provisioning of new data much faster and easier, while remaining secure, enabling organizations to respond effectively to external data requests as defined by the EDA.

The logical layer, which decouples data consumers from the often complex and heterogeneous technical infrastructure required to manage all available data, and hosts the semantic model. This model provides a conceptualization of the reference context and makes it available to everyone in a clear, consistent, and unambiguous way. It enriches data with all the elements – or rather, meta-elements – necessary for proper identification, understanding, and usage.

The semantic model is where privacy laws, security protocols, and ethical guidelines are managed and enforced. It explicitly defines access rights and usage constraints, fostering trust among all stakeholders, and encouraging broader data use while preserving data sovereignty and integrity. The Denodo Data Catalog, designed specifically for data consumers as a point of access to data, not only simplifies data discovery but also enables a continuous connection between data meaning and data instances. This strengthens the understanding of what the data represents and how well it does so—and, above all, the trust that can be placed in it.

Finally, artificial intelligence (AI) also plays a crucial role in simplifying data management, understanding, and use. It supports both data stewards and data consumers in their daily activities,

because, as it’s always worth repeating, any transformation that isn’t supported by tools that facilitate its adoption is destined to fail.

The EDA and Beyond

In complex, multi-entity environments, logical data management is not just an option, but the ultimate solution to share data effectively and make sure that it is easily understood, securely governed, and widely used, not only to comply with the spirit of the EDA, but more importantly, to take a decisive step toward a data economy that is ethical, just, and for the benefit of all.

Andrea Zinno
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