Car services groups have issued a cautionary note, expressing concerns that the stalled EU proposal aimed at ensuring equitable access to valuable vehicle data may open the door to unfair competition from technology companies in the United States and China.
The ongoing clash over vehicle data between automakers and a coalition comprising insurers, leasing companies, and repair shops underscores the significant potential of the connected car market. According to Fortune Business Insights, this market could witness substantial growth, reaching 250 billion-400 billion euros ($272 billion-$435 billion) by 2030.
Automakers are increasingly seeking to capitalize on software products and subscription services driven by comprehensive data covering aspects such as driving habits, fuel consumption, and tire wear. However, the absence of clear data ownership definitions in EU law has given rise to the current dispute between car manufacturers and entities seeking access to this information.
Initially scheduled for adoption in the second quarter of the year, the European Commission's rules on data sharing are yet to materialize into a legislative proposal. Car services groups are apprehensive about the limited number of industry players with access to the data, emphasizing that unfair access could result in the sector being dominated by U.S. and Chinese companies, as highlighted by Benjamin Krieger, the secretary general of the European Association of Automotive Suppliers (CLEPA).
Another issue that legislative measures could address is the lack of standardized data, according to Laurianne Krid, director general of FIA Region I, part of the Federation Internationale de l'Automobile (FIA). Car makers argue that the Commission's proposed Data Act empowers users to control data generated by vehicles, ensuring fair and nondiscriminatory access for third parties. However, Krieger contends that it fails to adequately consider the specificities of the automotive sector, stating that it does not align with the technology and competitive landscape.
Despite the concerns raised by car services groups, Alphabet's Google has already secured a position in the market. General Motors selected Google to develop infotainment systems for future electric vehicles, replacing Apple CarPlay and Android Auto technologies. Recently, Mercedes Benz also entered into a collaboration with Google to provide traffic information and automatic rerouting in its vehicles. The European Commission has not responded immediately to requests for comment on the matter.
