By Foo Yun Chee
BRUSSELS (Reuters) – The European Commission is gearing up to introduce a proposed law later this year that would provide insurance companies, leasing firms, and repair shops with equitable access to valuable vehicle data. This initiative is outlined in the commission’s forthcoming auto industry action plan, set to be unveiled on Wednesday. If approved by member states, this legislation could bring an end to the ongoing battle among car service providers, major technology firms, and automakers, all vying to capitalize on in-vehicle data for the development of new products and services. The scope of this data ranges from driving patterns to fuel efficiency and tire wear, with industry analysts predicting that the connected car market could be valued at hundreds of billions of euros by the end of the decade. The lack of clear ownership regulations regarding this data in EU law has led to the current dispute over access.
“The specific characteristics of connected motor vehicles and the potential for new business opportunities, particularly in bi-directional and smart charging, necessitate additional measures,” as stated in the draft of the auto industry action plan obtained by Reuters. “Consequently, the Commission will implement appropriate measures, including a legislative proposal on vehicle data access, to enable the entire automotive ecosystem to leverage the advantages of data from connected vehicles,” the draft outlines, with the proposal slated for unveiling this year. Car manufacturers have expressed reservations about potential legislation that could impose broad obligations on them, citing concerns about safeguarding trade secrets and preventing data misuse. Furthermore, the auto industry has raised apprehensions regarding the looming dominance of major technology companies in car dashboard infotainment systems. Alphabet’s Google and Apple have already made inroads in this market segment. (Reporting by Foo Yun Chee; editing by Barbara Lewis)
