Compensation & FRAND
Data compensation and FRAND terms under the EU Data Act
When you have to share data with another business, can you charge for it? Usually yes — but only on fair, reasonable and non-discriminatory (FRAND) terms. This guide explains what you can charge, and the special protection for SMEs.
What does FRAND mean?
FRAND stands for fair, reasonable and non-discriminatory. Where the Data Act obliges you to make data available to another business, Article 8 says you must do it on FRAND terms and in a transparent way — you cannot use your control of the data to impose one-sided or excessive conditions.
Non-discriminatory means comparable data recipients must be treated alike. If a term is challenged, it is the data holder — not the recipient — who has to show it is not discriminatory.
What can you charge?
Article 9 lets a data holder and a data recipient agree compensation for making data available in a business-to-business relationship. It must be reasonable and non-discriminatory, and it may include a margin. Relevant costs include formatting the data, delivering it electronically, storage, and the investment made in collecting and producing it.
You must also be transparent: give the recipient enough detail on how the compensation is calculated so they can check it meets the rules. Remember that giving users access to their own data is free — compensation only applies to third-party data recipients.
The SME exception
There is important protection for smaller recipients. Where the data recipient is an SME or a not-for-profit research organisation, the compensation cannot exceed the costs directly related to making the data available — no profit margin is allowed (Art. 9(4)).
The ground rules
What reasonable compensation looks like
Cost-related
Based on real costs — formatting, delivery, storage and the investment in producing the data.
Non-discriminatory
Comparable recipients pay comparable prices; you must be able to justify any difference.
Transparent
Show the recipient how the figure is calculated, in enough detail to be checked.
Not excessive
Pricing designed to block access or extract unfair value can be challenged.
Getting it right
How to set compensation that holds up
Document your costs
Record the formatting, delivery, storage and data-production costs behind your price.
Flag SME recipients
Identify SME and research-organisation recipients so you apply the cost-only cap.
Keep pricing consistent
Use a consistent, defensible basis across comparable recipients to stay non-discriminatory.
Know the dispute route
If you can't agree, certified dispute-settlement bodies offer a fast, low-cost resolution (Art. 10).
Check your position
See how your data-sharing terms measure up
Answer a few questions to get a free indication of whether your data-sharing charges and terms are Data Act-ready.