Article 114 of the Treaty on the Functioning of the European Union (TFEU) is identified as the relevant legal basis for this Regulation. Pursuant to this Article, the EU has to adopt measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the establishment and functioning of the internal market in the EU. This initiative is part of the 2020 European strategy for data that aims to strengthen the single market for data. With a growing digitalisation of the economy and society, there is a risk that Member States will increasingly legislate data-related issues in an uncoordinated way, which would intensify fragmentation in the single market. Setting up the governance structures and mechanisms that will create a coordinated approach to using data across sectors and Member States would help stakeholders in the data economy to capitalise on the scale of the single market. It will contribute towards the establishment of the single market for data, by ensuring the emergence and cross-border functioning of novel services through a set of harmonised provisions.