The UK’s Data (Use and Access) Bill has been grabbing headlines. As it moves through Parliament, the Bill aims to reshape how data is shared across sectors. The government claims this move could unlock £10 billion in economic value by fostering innovation. Before diving into the concerns, it’s important to understand what the Bill proposes. At its heart, the legislation seeks to create a more open, connected data environment across both public and private sectors. Some of the key aspects of the Bill include:
- Establishing trusted frameworks to support secure and responsible data sharing between organizations.
- Permitting sector-specific ‘smart data’ schemes to boost innovation and competition.
- Enabling broader access to public sector data for research, innovation, and policy-making purposes.
- Clarifying the legal basis for processing data in the public interest—particularly in fields like healthcare, education, and scientific research.
- Introducing updated provisions on the use of artificial intelligence (AI) and automated decision-making to reflect evolving technologies.
- Granting ministers the power to update or amend regulations more flexibly through secondary legislation.
By addressing long-standing barriers to data access, the Bill sets the stage for a more agile and innovation-friendly digital ecosystem in the UK.
This vision is compelling. Encouraging better data sharing between businesses, researchers, and government entities has the potential to fuel innovation, unlock new economic opportunities, and strengthen the UK’s standing in an increasingly data-driven world.
Potential Benefits and Opportunities
To strike a fair balance, the Bill offers several advantages that could positively reshape the UK’s digital and economic future:
- Businesses could leverage streamlined data access to drive faster product development, improve services, and stay competitive in global markets.
- Researchers might find it easier to conduct large-scale, evidence-based studies—leading to advancements in health, sustainability, and technology.
- Public services could become more efficient and responsive by tapping into real-time data insights, ultimately benefiting citizens.
- Smaller innovators and start-ups could gain access to datasets that were previously siloed, allowing for a more level playing field in tech and R&D.
Yet, despite the potential, the Bill has raised several concerns that cannot be overlooked.
Key Risks and Challenges
Risk to Proprietary Business Data
One of the loudest concerns is the protection of sensitive business (commercial) data. Data-sharing obligations under the Bill could expose proprietary information, such as trade secrets, intellectual property, and competitive advantages, to wider access. Smaller businesses may lack the resources to properly safeguard such data, leaving them vulnerable to intellectual property theft or unfair competition. This risk is amplified for firms that rely heavily on their data for business success.
Threat to the UK’s Data Adequacy Status with the EU
Post-Brexit, the EU has granted the UK data adequacy status, allowing personal data to flow freely between the two regions. However, if this new Bill weakens data protection standards, the UK’s adequacy status could be jeopardized. This would require UK businesses to implement costly legal safeguards for cross-border data transfers, significantly raising operational expenses.
Expansion of Ministerial Powers: A Governance Risk
The Bill grants ministers significant discretionary powers to amend key data laws through secondary legislation often referred to as “Henry VIII powers.” This concentration of power could lead to unpredictable legal changes, creating uncertainty for businesses and consumers alike.
Compliance Burdens for SMEs
The new data-sharing rule could impose an unfair burden on smaller businesses that may not have the legal or technical capacity to comply with complex regulations. These businesses could find themselves at a competitive disadvantage, possibly leading to larger companies taking over the market. This could slow down innovation from smaller, more flexible companies, which play a big role in driving the UK’s tech development.
Ethical Risks: Balancing Innovation with Privacy
While the Bill seeks to encourage innovation, it raises ethical concerns about the potential misuse of personal data. As artificial intelligence (AI) and machine learning technologies become more common in data-sharing systems, there are risks related to algorithmic bias, discrimination, and the exploitation of personal information.
Information Commissioner’s Response
The Information Commissioner’s Office (ICO), led by John Edwards, has expressed broad support for the Bill’s goal of encouraging innovation. However, the ICO has raised a few important concerns:
- Data Protection Must Be a Priority: The ICO emphasizes that while encouraging innovation is important, strong data protection standards must remain a priority. The ICO encourages the need for a balanced approach where innovation and modernisation of stringer data protection frameworks go together.
- Clarity on Public Interest Processing: The ICO has called for clearer definitions, particularly regarding how the Bill addresses public interest processing in areas like scientific research.
- Children’s Data: The Bill introduces new duties to ensure stronger protection of children’s data, requiring organisations to consider “higher protection matters” under data protection by design. However, the ICO seeks further clarity on how these new obligations align with existing standards like the Age-Appropriate Design Code.
- Preserving the UK’s Data Adequacy Status: The ICO emphasizes the need to maintain alignment with EU standards to preserve the UK’s data adequacy status, which is crucial for businesses.
- Focus on AI and Automated Decision-Making: The ICO has welcomed the new guidelines for AI and automated decision-making but has emphasized the need for public consultations to ensure these changes are effectively implemented.
The UK’s Data Use and Access Bill presents a bold move to leverage data for economic growth and technological innovation. However, the balance between encouraging data sharing and safeguarding privacy, security, and business integrity will be critical. While the Bill could open doors to new opportunities, it must be handled with care to ensure it doesn’t compromise the very protections that enable trust in the digital economy.
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News of the week
1. Gmail Warns 1.8 Billion Users of Sophisticated Cyberattack
Google has issued a warning to its 1.8 billion Gmail users about a new, highly sophisticated phishing attack. Cybercriminals are sending emails that closely mimic trusted contacts or well-known organizations, aiming to steal personal information or login credentials. Unlike traditional scams, these emails are much harder to detect, making them a greater threat to users’ security. Google advises users to remain cautious, verify unexpected requests, avoid clicking unfamiliar links, and enable two-step verification for added protection. While Google continues to strengthen its security measures, user awareness remains crucial to staying safe against these evolving threats.
2. DeepSeek Reinstated in South Korea After Data Privacy Breach Suspension
Chinese artificial intelligence service DeepSeek returned to South Korean app markets on 28th April 2025, nearly two months after downloads were suspended due to alleged violations of data protection regulations. On Thursday, South Korea’s Personal Information Protection Commission stated that when DeepSeek initially launched in the country in January, it transferred user data and prompts without obtaining proper consent.
3. Meta’s $220 Million Fine Upheld in Nigeria
Nigeria’s Competition and Consumer Protection Tribunal announced on 25th April 2025 that a $220 million fine imposed on Meta Platforms for breaching local consumer protection, data privacy, and data protection laws has been upheld after an unsuccessful appeal. The Federal Competition and Consumer Protection Commission (FCCPC) issued the fine last July, accusing Meta of engaging in discriminatory and exploitative practices toward Nigerian consumers compared to its conduct in jurisdictions with similar regulatory standards.
4. Newsom Cautions Privacy Agency on AI Rules, Echoing Tech Industry Concerns
California Governor Gavin Newsom is urging the state’s privacy watchdog to be careful with new AI regulations. In a recent letter, he warned that strict rules could cost businesses billions and slow down innovation, putting California’s tech leadership at risk. Newsom is pushing for a balanced approach — one that protects consumers without holding back progress. The state’s privacy board is still debating the rules, with a final decision expected later this year.
https://www.politico.com/news/2025/04/24/newsom-california-privacy-cppa-ai-00307233
5. Gmail’s New Encryption Tool Raises Concerns Over Potential Scams
Google has just rolled out a new end-to-end encryption feature for Google Workspace users, designed to boost email privacy. While it’s great for keeping your messages safe, experts are warning that it could open the door for scammers. The catch? If you’re not using Gmail, scammers might send you fake invitations to view encrypted emails. These emails could look legitimate, tricking you into clicking on dangerous links and giving away your login info. So, while the new tool is a win for privacy, it’s also a reminder to stay extra vigilant with your emails. Always double-check who’s sending you messages and avoid clicking on anything that feels off.
https://www.wired.com/story/gmail-end-to-end-encryption-scams
