The UK government has launched a consultation exploring the introduction of a Smart Data scheme within digital markets. This initiative, which leverages new powers granted by the Data (Use and Access) Act 2025, aims to gather views on the feasibility and implementation of such a scheme, ultimately seeking to empower consumers and foster a more competitive digital landscape.
Smart Data schemes enable individuals and businesses to securely share their data with third-party providers. This sharing, always with explicit consent, can unlock a range of new services, from personalised financial advice to more competitive deals on utilities. The government's focus on digital markets for this particular consultation signifies a recognition of the vast amounts of data generated and held by large online platforms, and the potential benefits of allowing consumers greater agency over this information.
The Data (Use and Access) Act 2025 provides the legal framework for such schemes, allowing the government to mandate data sharing where it believes it will deliver significant public benefit. This consultation is a crucial step in determining how these powers will be applied specifically to digital markets, considering the diverse range of services from e-commerce and social media to online entertainment and cloud computing.
The consultation invites input from a wide array of stakeholders, including consumers, businesses, industry bodies, and civil society organisations. Key areas of interest include identifying which digital markets would benefit most from a Smart Data scheme, the types of data that should be in scope, and the technical and regulatory infrastructure required to ensure secure and efficient data sharing. The government is also keen to understand potential challenges and how to mitigate them, such as data security risks and ensuring a level playing field for all participants.
Introducing a Smart Data scheme in digital markets could have significant implications for how UK consumers interact with online services. By giving individuals more control over their personal data, it is hoped that new, innovative services will emerge, driving down costs and improving the quality of offerings across the digital economy. This move aligns with broader government efforts to enhance data portability and promote competition in sectors dominated by a few large players.