My data is sensitive and for ethical or legal reasons I am not allowed to share it. Are the research funders asking me to act against the law?

First: No, that's not what the research funders are requiring!

All research funders emphasize that ethical and legal constraints must be respected at all times. If, for example, data protection, contracts, copyright or ethical reasons prevent data publication, the data must not be published. On the other hand, data publication should always be attempted if this can be achieved with a reasonable amount of effort. For example, in the case of personal data, data publication can be made possible through the consent of the data subject or through anonymization. For more information, see: Legal and ethical issues.