EU plans law to give car services groups access to vehicle data

The European Commission aims to propose draft legislation this year that would allow insurers, leasing companies and repair shops fair access to valuable vehicle data, according to its auto industry action plan to be published on Wednesday.

Provided it gets the backing of member states, the law could end a tussle between car services groups, Big Tech and automakers that are all seeking to monetise in-vehicle data as they seek to develop new products and services.

The data covers anything from driving habits to fuel consumption and tyre wear, and analysts have said it means the connected car market could be worth hundreds of billions of euros by the end of the decade.

Ownership of the data is not clearly defined in EU law, which has resulted in the dispute over access.

"Due to many specificities of connected motor vehicles and its potential to open new business opportunities, including on bi-directional and smart charging, complementary measures are needed," said the draft auto industry action plan seen by Reuters.

"The commission will therefore take adequate measures, including a legislative proposal on access to vehicle data, to allow the full automotive ecosystem to reap the benefits of data from connected vehicles," it said, with the proposal planned for this year.

Carmakers have cautioned against legislation that could impose blanket obligations on them and also warned of the risks to trade secrets and data misuse.

The auto industry has in addition voiced concern that Big Tech could soon dominate the infotainment systems on cars' dashboards. Alphabet's Google and Apple have a foothold in the market.