Arcep gives the go-ahead for the labelling of Data Intermediation Service Providers

The French law aimed at securing and regulating the digital space, known as the SREN Act, was published in the Journal Officiel on 22 May. In particular, the text relates to the implementation of the European Data Governance Act, which formalises the existence of the Data Intermediation Service Providers (DIPS) that the Association pour l’Intermédiation de Données (AID) has been calling for. AID intends to make a full contribution to sectoral policies promoting the free circulation of data and innovative data intermediation initiatives. Its aim? To build a thriving ecosystem to accelerate the growth of the data economy.
This objective is shared by Arcep (the French regulatory authority for electronic communications, postal services and press distribution), which has been given new powers under the SREN Act. In particular, the Authority will be responsible for receiving notifications and processing applications for PSID labelling under the European Data Governance Act (DGA).
Léo Quentin, Head of the Data Services and Cloud Unit at Arcep, explains.

AID: What is the background to the new regulatory tasks delegated to Arcep by the SREN Act?

Léo Quentin: In particular, this law establishes the national framework for the implementation of the European Regulation on data governance, the Data Governance Act, in which Arcep will be participating. The aim of this European text is to enable the growth of the data economy and to promote the circulation and use of data by businesses, for example in order to develop innovative products. In particular, the text officially defines a new category of players: Data Intermediation Service Providers (DISPs).

All this stems from the European Commission’s observation that the potential of data is largely under-utilised in the European Union. The aim is to create a single market for data within the main European economic sectors. The law also gives Arcep powers over cloud providers, in anticipation of the Data Act.

AID: What provisions does the text include?

Léo Quentin: By creating PSIDs, the law creates neutral, trusted third parties who put those who produce the data – whether personal or not – in touch with those who are interested in it. These intermediaries are required to comply with certain obligations, notably data neutrality – in other words, they must not use the data they transmit for their own purposes – commercial non-discrimination, fairness to users and security of data exchanges.

The aim of all this is to guarantee the independence, neutrality and fairness of data intermediation service providers vis-à-vis their users, and to provide guarantees of confidence for the development of the data economy. In addition, they must notify their activities to the national authorities, namely Arcep in France, and will be able to ask the Authority to confirm that they are complying with the obligations laid down in the regulation in order to obtain certification as a ‘data intermediation service provider recognised in the European Union’.

AID: What happens in practice with this notification and the applications for certification?

Léo Quentin: From 22 May, Arcep opened a window enabling PSIDs to notify their activity and apply for the corresponding label, recognised throughout the European Union. The notification and labelling procedures are available on the authority’s website. It is now up to the players to get to grips with them.

To apply for certification, they must provide evidence that they are complying with the obligations set out in the text. All of this is checked by Arcep before it awards them – where appropriate – a PSID label recognised throughout the EU. The first notifications have already arrived, and AID members are among them. There are only a few pioneering players at the moment, which is perfectly normal as the approach is highly innovative, but we expect activity to develop. Finally, the data will be sent to the European Commission to update the European register of data intermediation services, which lists all the notified players in the EU.

AID: What are the issues at European level for data intermediaries?

Léo Quentin: There is a real issue at European level around the harmonisation of data sharing. Arcep is a member of the European Data Innovation Committee, which is working to ensure that the rules are the same in all Member States. This committee also aims to develop interoperability and network intermediaries within the European Union. It is indeed possible that the data of an agricultural player could be of interest to a player in another sector. This means that players in different sectors need to be able to communicate and exchange data across ever wider areas. This is an area of expertise that we have already begun to develop in other fields, and which we will be applying to data intermediaries.

AID : How does Arcep see this new role?

Léo Quentin: Our philosophy is to support the opening up of digital ecosystems, and data intermediation is part of this approach. We want to work to encourage exchanges, make the data economy market more fluid and ensure that people have confidence in this new market. It’s a mission we welcome with great enthusiasm.And even though this is new territory for Arcep, it fits in completely with our philosophy and our DNA as a regulator. We will carry out this mission as diligently as possible, and we will also pursue a transparent information policy to support the players and the development of the market. Our aim is for this new data economy to be useful and to develop the potential of data exchanges, which is currently under-exploited.