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.

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