The European Commission is set to unveil a draft law this year that would grant insurers, leasing companies, and repair shops fair access to crucial vehicle data, as outlined in its auto industry action plan. If approved by member states, this legislation could resolve the ongoing clash between car services, Big Tech, and automakers—each vying for control over in-vehicle data, which is seen as a key driver for new products and services.
The proposed law will address the need for access to data ranging from driving habits and fuel consumption to tire wear. Industry analysts predict that the connected car market could reach hundreds of billions of euros by the end of the decade, driven by this wealth of data. However, the issue of who owns this data remains murky under current EU law, leading to disputes over access.
“The potential of connected vehicles to unlock new business opportunities, including in areas like smart charging, requires additional measures,” the draft auto industry action plan states. “The Commission will propose legislative action on vehicle data access to ensure that the entire automotive ecosystem benefits from the data generated by connected vehicles.”
Carmakers, however, have expressed concerns that the law could impose stringent obligations and expose trade secrets, along with the risk of data misuse. There’s also growing unease within the auto industry about the increasing influence of Big Tech, with companies like Google and Apple already making their presence felt in the infotainment space on car dashboards.
As the European Commission moves forward with the proposal, industry stakeholders will closely monitor its progression and impact on the balance of power in the automotive and technology sectors.
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