By Foo Yun Chee
BRUSSELS (Reuters) – The European Commission is set to propose a draft law this year to enable insurers, leasing companies, and repair shops fair access to valuable vehicle data, as outlined in its forthcoming auto industry action plan scheduled for publication on Wednesday. If supported by member states, this law could resolve the ongoing conflict between car service providers, Big Tech companies, and automakers, all vying to capitalize on in-vehicle data for the development of new products and services.
This data encompasses a wide array of information, from driving patterns to fuel usage and tire wear, with analysts predicting that the connected car market could potentially reach a value of hundreds of billions of euros by the end of the decade. The issue of data ownership remains ambiguous under EU legislation, leading to the current access dispute.
“The specific nature of connected motor vehicles and their potential to create new business opportunities, particularly in bi-directional and smart charging, necessitate additional measures,” states the draft auto industry action plan obtained by Reuters. “The Commission will thus implement appropriate measures, including a legislative proposal on access to vehicle data, allowing the entire automotive ecosystem to harness the advantages of data derived from connected vehicles,” the document reveals, with the proposal slated for later this year.
Car manufacturers have expressed reservations regarding potential legislation that might impose broad obligations on them, citing concerns over the protection of trade secrets and data misuse. Furthermore, the auto industry has raised alarms about the looming dominance of Big Tech in the infotainment systems integrated into vehicles’ dashboards, with tech giants like Alphabet’s Google and Apple already making inroads into this market.
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
