When we drive a modern car nowadays, few of us are unsurprised with the amount of technology available to make the drive safer, more comfortable, and much more efficient. Modern, software defined vehicles make the entire experience a whole different one than it used to be just a few years ago. This technology also makes the connected car one of the biggest producers of real-time data.
Service development in this highly digitalised environment critically depends on service providers access to the vehicle data, functions and resources. Without such access the development of interactive services is not possible. Access today is mainly in the hands of car manufacturers, who act as gatekeepers to vehicle platforms and data. Pro-consumer and pro-competitive legislation is essential to kick-start the development of a vibrant, innovative and competitive European market for connected car services. The European Commission itself estimates this market could be worth €400bn globally by 2030.
Action is required now, and we have all the necessary evidence and work done not to lose any more time
At the dawn of the new European political cycle, FIGIEFA and its members and partners need to stress that the European Commission’s long-promised plan for a sector-specific legislation on access to in-vehicle data, functions, and resources is more necessary than ever. The Data Act neither addresses the complex market structure nor the technical requirements in the automotive industry which create barriers to equitable data access.
Services like remote diagnostics require access to vehicle functions, not merely data. Vehicles also increasingly come with in-vehicle App platforms, which allow safe driver interaction and on-board processing of data as a means of delivering services. Such access to vehicle functions and resources is not at all addressed by the Data Act. The Data Act itself foresees the need for sector-specific legislation to address such issues.
It is important to note that there is no need to develop a completely new regulation as this sector-specific would fall under the existing Type-Approval regulation. A draft legislative proposal has been prepared and had passed European Commission’s Regulatory Scrutiny Board, as required under the better regulation rules. The Commission process was not fully completed before the European Parliament Election, however. Therefore, there is no need to start from scratch, nor new legislation to be created; action is required now, and we have all the necessary evidence and work done not to lose any more time.
As a reminder of the crucial importance of having smart regulation to enable fair competition and an operational independent aftermarket, it was pointed in a recent study by Berylls by Alix Partners that a lack of regulation in favour of car manufacturers dominance could have an impact of adding €40bn additional consumer cost for repair, maintenance and collision repair!
Therefore, the EU must urgently put in place equal access to vehicle-generated data, functions and resources for all market actors by delivering sector-specific legislation that protects consumer choice and encourages real competition and investment in digital transformation and data-driven businesses.