Open call for evidence

Smart Data opportunities in digital markets

Published 28 July 2025

Executive summary

This call for evidence seeks views on the potential to introduce a Smart Data scheme in digital markets. Smart Data refers to the secure sharing of customer and business data with authorised third parties, enabling innovative services that can improve outcomes for consumers and businesses.

As noted in the Industrial Strategy, data is key for economic growth but is often too underused, siloed and fragmented for businesses and the public to reap the benefits.^{[footnote 1]} As part of its work to improve access to data for innovators and businesses, the government is assessing whether the new Smart Data powers introduced by the Data (Use and Access) Act 2025 should be applied to support use cases in digital markets. This includes exploring viable use cases, the design features required to deliver a successful scheme, and the potential impacts on customers, businesses, and the wider economy.

Digital markets^{[footnote 2]} play a growing role in modern life and are transformative to the way we work and access services and information, but challenges around data portability, customer empowerment, and market competition persist that could be holding back economic growth and innovation and positive outcomes for consumers and businesses.^{[footnote 3]}

Responses will help shape the government’s next steps on Smart Data in digital markets, ensuring any future scheme is evidence-led, proportionate, and designed to deliver meaningful benefits.

1. Introduction

1.1 About this call for evidence

This call for evidence seeks views on the opportunities for developing a Smart Data scheme in digital markets.

The Data (Use and Access) Act 2025, which received Royal Assent in June, establishes regulation-making powers to allow government to set up Smart Data schemes across the economy.^{[footnote 4]}

The Industrial Strategy sets out the government’s aim to establish the UK as a global leader in data-driven innovation and content creation, with a robust, secure and interoperable data sharing infrastructure that supports sustainable economic growth.

The government committed to explore the potential for Smart Data in digital markets, and how it can support growth through the competition and consumer benefits of data maturity.^{[footnote 5]}  

The government would like to understand whether there is a case to use the new Smart Data powers established through the Data Use and Access Act to promote growth, the use cases that might exist, and the key design elements a scheme would need to support those use cases.

The government will consider stakeholder responses to this call for evidence to determine whether a Smart Data scheme within digital markets could bring real benefit to customers, businesses and the wider economy.

This call for evidence refers throughout to ‘customers’. This refers to domestic consumers and businesses of all sizes (from small and medium enterprises to large industrial and commercial businesses).

1.2 Who should respond to this call for evidence?

The government would like to hear the views of firms from all sectors of digital markets, consumer groups, potential third-party providers (including app and software designers), trade bodies, industry groups, and academia in this call for evidence. We would also welcome views from organisations or individuals with experience in data sharing, in digital markets, Open Banking and beyond. We encourage respondents to engage with all questions where they have views, but given the breadth of issues covered, we do not expect full responses to every question.

1.3 What is Smart Data?

Smart Data is the secure sharing of specified data with third parties. Where customer data is shared, this must be done upon the customer’s request with an authorised third-party provider (ATPs). These ATPs can use the data to provide innovative products and services that save customers time and money.

The Data (Use and Access) Act 2025 introduces 2 main powers, and the government would like to hear views on their potential application. 

The first power (section 2) relates to customer data.  It allows regulations to require traders to provide in a secure way, upon a customer’s request, data relating to that customer to an ATP authorised by that customer. The central objective is to give customers control over the use of their own data, so they can access useful products and services that cater to their needs.

The second power (section 4) relates to business data. It allows regulations to require traders to publish or provide business data. Business data is general information about goods, services and digital content supplied or provided by a trader; their supply or provision. It can include availability, price, or information about feedback, use, performance or quality. Because this data does not relate to a particular customer, its sharing does not require the authorisation of a customer.

Regulations can require the provision (and in the case of business data, publication) of either customer data or business data or both. Where both are provided, business data may give important contextual information accompanying the customer data – and enable a customer to compare deals which it might obtain from other traders. 

Smart Data is a subset of wider data sharing and is a type of data portability. However, under Smart Data, customers give authorisation for their customer data to be used in a way that generally provides them with some value. The ATP may enhance the customer data with business data or with broader contextual data which may be open access or commercially available.

1.4 What is a Smart Data Scheme? 

A Smart Data scheme is the arrangement that governs how Smart Data works in a specific sector. It establishes a trust framework which sets the standards under which data must be shared, used and protected, alongside the roles and responsibilities of different scheme participants. 

Requirements could include:

• what data is shared between the data holder and the ATP
• the specification of data standards to ensure data is shared in a consistent format
• the technical process for secure sharing and customer protections

And in the context of schemes relating to customer data:

• the process for customers to give authorisation for data sharing
• which third parties can access customer data and how they become authorised

Data holders and ATPs need to identify themselves and confirm they are authorised to share or receive the requested data. Data standards will ensure that data is shared in a common format.

1.5 What do we mean by “digital markets”?

Digital markets is a diverse area of the economy providing a range of services to consumers and businesses. It generally involves the provision of services by means of

the internet or the provision of digital content.^{[footnote 6]} Among others, actors within digital markets include a wide range of online platforms that facilitate the exchange of goods, services, or information between multiple user groups, typically buyers and sellers, through internet-based technologies. They encompass a wide range of platforms, including e-commerce sites, service marketplaces, subscription services, and social media shopping features.  

Characterised by features such as network effects, data-driven operations, and multi-sided interactions, digital markets offer global reach, operational efficiency, and personalised services. As such, digital markets play a critical and evolving role in the modern economy, reshaping how businesses operate and how consumers access goods and services.

1.6 What do we want to achieve in this call for evidence?

The government would like to hear views on –

• Whether there are specific data access issues in digital markets that might be addressed through a Smart Data scheme.
• If there are specific issues, the possible use cases that would be supported by a Smart Data scheme that addresses them.
• The key design features a Smart Data scheme would need to support these use cases.
• Initial views on the costs and benefits of a Smart Data scheme that addresses any issues which are identified.
• Any other preliminary views stakeholders might have on the use of Smart Data in digital markets more broadly.

Digital technologies are an increasingly fundamental feature of our daily lives. Ofcom recently reported that in 2025 , 99% of adult internet users in the UK used some form of online communication platform, 90% have at least one social media account, and 3 quarters use a search engine at least once a day.^{[footnote 7]} Consumers place great financial value on a range of online services, with values of multiple thousands of dollars being assigned to search engines and digital maps.^{[footnote 8]}

Because personal data is highly valuable to platforms for personalised advertising and developing user services, there is a considerable incentive for them to maximise the volume of data they collect from their users.^{[footnote 9]} The government is keen to understand whether and how this data can be unlocked in a way that empowers citizens and support data availability in the economy to promote innovation and competition as well as contributing to growth.

We recognise that data gathering is vital for funding many forms of high-quality content and services, particularly those which are provided without customers paying money directly for them. It is important that any scheme does not prevent potential data holders from developing, offering and improving the services they provide to consumers.

2. Designing a targeted scheme

A successful Smart Data scheme must provide solutions to the real-life needs that consumers and businesses face when engaging with digital markets. This section seeks to establish whether problems and frictions exist in digital markets which could be addressed through Smart Data, whether a scheme could support ATPs providing innovative products and services as well as crucial design elements of a scheme.

2.1 Addressing customer needs

Article 20 of the UK GDPR provides individuals with a right to data portability.^{[footnote 10]} It allows individuals to obtain and reuse their personal data for their own purposes across different services. This enables individuals to take advantage of applications and services that can use this data to, for example, find a better deal or help them understand their spending habits.

Smart Data schemes are intended to provide enhanced data portability rights beyond the right to data portability in Article 20 of the UK GDPR. UK GDPR does not however guarantee provision  of customer data in “real time” or in a useful format, nor covers wider contextual data. It also may not apply where the customer is not an individual. 

We are interested in your views on whether you have observed particular issues that customers face in accessing data in a digital markets context, especially where better access to that data could support the development of products and services by ATPs.

Question
What issues do customers face in accessing their data held by digital markets firms and sharing that data with third parties?   

Question
What use cases do you believe could be supported through a Smart Data scheme to address those issues, including types of products and services that ATPs might be able to offer, and what outcomes could this result in?

2.2 The scope of a scheme

Digital markets is a broad area of the economy in which many types of firm operate. Data is of fundamental importance to digital markets firms which collect vast amounts of user data.^{[footnote 11]} The government would like to identify where businesses are being held back by poor data access and where these data access issues could be helped through a Smart Data scheme. We would like to hear your views on what part or parts of this market would need to be covered by a Smart Data scheme to tackle any data access issues that exist. This means identifying the types of business that would need to be in scope as well as what data would need to be made available.

As well as types of business that would need to be in scope, we would welcome views on the types of data that would need to be made accessible to support possible use cases. Most notably it would help us to understand whether a scheme would cover customer data under the Section 2 power or  business data under the Section 4 power.

A successful scheme would need to be sufficiently broad in scope to adequately address any data access issues without imposing requirements that force firms to make data that is of no wider benefit interoperable.

We recognise that use cases may be supported by a broad scheme across a range of digital markets firms or may be targeted narrowly at a specific subsector to cater for the needs of a specific customer group.

Question
What types of data and data holders would need to be in scope of a scheme in order to support any business models and address data access issues and use cases you have identified above?

3. Assessing a digital markets Smart Data scheme

In this section we seek early views from stakeholders on some of the costs, benefits and other factors the government would need to consider when determining the case for a digital markets Smart Data scheme. We recognise that it may be difficult for you to give detailed responses at this stage. Nevertheless, initial and provisional views will be invaluable to the government when considering this issue.

Question
What are your views on the feasibility to deliver a digital Smart Data scheme? Please consider any current or planned industry developments or changes that might affect delivery and highlight any key challenges.

Question
Do you have an initial or provisional view on the likely impacts (positive and negative) on:

• Existing and future customers
• Data holders
• Small and micro businesses

Question
Do you have an initial or provisional view on the likely impacts (positive and negative) on:

• Innovation in the supply or provision of goods, services and digital content whether directly affected by a scheme or otherwise
• Competition in markets for goods, services and digital content affected by the regulations or other markets
• Business investment in the UK
• Economic growth

3.1 Risks

The introduction of new uses of  a Smart Data scheme may bring new or unexpected challenges and risks. These could come from a wide range of areas related to the technical, operational or customer use of the scheme. Examples of risks could include data quality, privacy concerns, competition or ethical risks. The impact of data quality issues could be worsened by increasing the number/stake of decisions being made on incorrect or incomplete data. Societal inequalities could be exacerbated if certain customer groups are excluded from participation.

We welcome your views on the challenges and risks we might need to consider as part of the design of a scheme, alongside suggestions to mitigate these.

Question
What challenges and risks should we consider when developing a digital markets smart data scheme and how can we mitigate these? This might include (but is not limited to): competition; customer exclusion; data quality or data misuse; ethical, operational or technical readiness.

3.2 Implementation

As we have not yet identified priority use cases or datasets, it is difficult to estimate the level of change required to implement a digital markets Smart Data scheme. However, we would welcome views on the potential costs to industry, as well as ongoing management costs, and where those costs might fall across different industry participants. We would also welcome consideration of any aspects that might be costly or challenging to implement, based on your understanding of what would be involved.

Question
What are the potential implementation costs to industry of introducing a digital markets Smart Data scheme? What aspects of a scheme might be most expensive to implement?

4. Designing a scheme for customers

4.1 Protecting customers

Any Smart Data scheme must be underpinned by trust.^{[footnote 12]} This means that customers must be protected from harm. Harms could include lack of meaningful authorisation, risks to customer safety, or insufficient protections for vulnerable customers.^{[footnote 13]}

Research suggests that customers have mixed feelings on whether the benefits of Smart Data outweigh the potential risks to customers (for example, privacy concerns ), with perceptions of the risks feeling much more tangible to customers than the benefits.^{[footnote 14]} Informed users with more clearly defined uses for their data are more likely to trust a Smart Data scheme .^{[footnote 15]}

Question
How can we build and maintain customer trust in a digital markets Smart Data scheme? For example, what responsibilities need to be considered for data owners and ATPs?

4.2 Wider design principles 

While some design features of a Smart Data scheme will be specific to digital markets, there are some essential building blocks for any successful scheme - to ensure customer trust, authorisation and control.

There is a significant body of work relating to best practice when developing a Smart Data scheme. The government has published several research papers on cross-cutting Smart Data topics, including design principles for inclusive Smart Data schemes, and research on customer authorisation, accreditation and liability.

The Competition and Markets Authority (CMA) has identified a set of design principles for an effective Smart Data scheme. This includes:

• Regulatory foundations that mandate industry participation, monitoring and oversight
• Common and open data standards
• Data made available that reflects market dynamics and minimises the risk to competition and customers
• A funding model that reflects customer interests
• Interoperability with other Smart Data schemes
• Effective representation of customers and other end users in scheme administration

We are interested in your views on which principles are critical to designing a digital markets Smart Data scheme. We are also interested in how we might best consider existing principles and standards in digital markets.

Question
What common principles are needed to support the development of a digital markets smart data scheme and why?

5. The wider context of a digital markets Smart Data scheme

Any successful scheme must be a complementary and coherent part of the regulatory and business landscape in which it sits. It is also important that the government takes adequate account of any lessons from relevant work that has already been carried out. In this section we set out some of the key elements of the context in which a scheme would sit and seek views on interactions and other factors the government should be mindful of.

5.1 The UK context

In recent years, new requirements have been put in place on digital markets participants, for example through the Digital Markets, Competition and Consumers (DMCC) Act 2024 or the Online Safety Act 2023. It is vital that any Smart Data scheme in digital markets takes account of obligations which are already in place and forms a coherent part of the overall regulatory landscape.

The government would also be interested to hear of examples of existing data sharing initiatives that might benefit from a standardised approach under a digital markets smart data scheme, or which should be left to evolve without government intervention.

Question
Are there any tensions, overlaps, gaps or other features of the regulatory landscape in digital markets that the government should take into consideration?

Question
What data sharing initiatives already exist in digital markets that the government should be aware of when evaluating a Smart Data scheme in digital markets?

Smart Data in energy markets

In January 2025, the Department for Energy Security and Net Zero (DESNZ) launched a call for evidence to understand the potential for introducing a Smart Data scheme in the energy sector. A substantial majority of respondents (76%) from a diverse range of stakeholder groups were supportive of the development of an energy smart data scheme. As a result, DESNZ will continue work over the course of this year to consider whether to introduce an energy smart data scheme. ^{[footnote 16]}

Open Banking 

Open Banking, launched in the UK, is the only examples of a scheme comparable to a Smart Data scheme. It allows consumers to securely share financial data and initiate payments, and help them manage their money more effectively. With over 13 million   users and more than 300 providers, it has driven innovation, raised over £2 billion in private investment, and created thousands of jobs.[^17] Its success demonstrates the potential of data access to improve services across sectors. HM Treasury now plans to scale the initiative and develop a long-term regulatory framework.

Question
What lessons should we bear in mind from Open Banking that would be helpful to consider when developing a digital markets Smart Data scheme?

5.2 International examples

The UK led the world with the introduction of Open Banking and, since then, more than eighty countries have or are implementing Open Banking schemes.

The Digital Markets Act

The European Union Digital Markets Act (DMA) establishes criteria to identify “gatekeepers”.  Gatekeepers are large digital platforms providing platform services such as online search engines, app stores and messenger services. Gatekeepers are subject to obligations and prohibitions listed in the DMA.

Among these obligations is a requirement for gatekeepers to provide users with free tools to access the data they generate on the platform. In some cases, this data must be provided in real time. Users can then transfer this data to other platforms or services either directly or through third parties authorised by the user.

The objective of these provisions is to make it easier for users to switch platforms and foster greater competition between digital services leading to better products and services. It also aims to support innovation allowing third-party developers to access and use user data to create new and competitive services.

Question

What lessons should the government bear in mind from the EU DMA and other Smart Data schemes in other jurisdictions including the establishment of Open Banking schemes around the world?

6 Additional comments

As noted above, this call for evidence aims to establish whether there is a case for a Smart Data scheme in digital markets and, if so, what the most significant elements of the design of such a scheme would be. We recognise that significant further work and engagement will be necessary to design the full detail of a scheme.

Question
Do you have any additional comments on any aspect of developing a digital markets Smart Data scheme that has not been covered elsewhere in this call for evidence?

How to respond

Your response will be most useful if it is framed in direct response to the questions posed, though further comments and evidence are also welcome.

Submit your responses online here.

This call for evidence will run until 23:59 on 15 September 2025.   

When responding, please state whether you are responding as an individual or representing the views of an organisation.  

In exceptional circumstances, if you need to submit a hard copy or require another format (e.g. braille or large font) please contact DMSmartData@dsit.gov.uk.

1. Industrial Strategy ↩

2. See 1.5 on what is meant by digital markets ↩

3. See for example ↩

4. Data (Use and Access) Act 2025 ↩

5. Invest 2035: the UK’s modern industrial strategy ↩

6. See for example - Digital Markets, Competition and Consumers Act 2024 ↩

7. Ofcom Adults’Media Use and Attitudes Report 2025. ↩

8. Final report ↩

9. The use of data by online services: an Analysis Mason report ↩

10. Regulation (EU) 2016/679 of the European Parliament and of the Council ↩

11. https://assets.publishing.service.gov.uk/media/5fa557668fa8f5788db46efc/Final_report_Digital_ALT_TEXT.pdf ↩

12. Building consumer trust in Smart Data ↩

13. Building consumer trust in Smart Data ↩

14. Part one: Examining public attitudes towards Smart Data schemes ↩

15. Part one: Examining public attitudes towards Smart Data schemes ↩

16. Developing an energy smart data scheme ↩