Exploiting Vehicle Data Sharing: No Need to Rebuild from Scratch

The European Commission has proposed a regulation for access to vehicle data, functions, and resources, aiming to complement the EU's Data Act passed late last year. However, this proposal has sparked controversy, with concerns about potential overlaps, increased regulatory burdens, and safety risks.

The Data Act, a broad-spectrum piece of legislation, covers all connected products, including vehicles. It ensures control over who can access the data, with no exceptions, and guarantees businesses and consumers complete authority over the data shared by their connected products. The Act's legal framework includes stringent data protection measures.

The Commission's proposed regulation, if implemented, could potentially undermine competitiveness by adding another regulatory burden. Manufacturers would encounter increased administrative burdens and potential overlaps in regulatory requirements, leading to inefficiencies and higher compliance costs.

Moreover, the regulation could open the doors to third parties to influence vehicle behavior on the road, posing major safety risks at a time when cybersecurity threats are on the rise. Early drafts of the Commission's impact assessment suggested the regulation would introduce sector-specific rules diverging from the Data Act.

Ursula von der Leyen, the President of the European Commission, advocates for a comprehensive Data Strategy, not more layers of regulation. She emphasises the need for the EU to focus on managing the green and digital transformation of the industry, rather than regulating every perceived problem.

The EU is facing unprecedented competitive pressure from other global regions and an increasingly challenging maze of legislative complexity and duplicity in Europe. Streamlining existing regulations would better serve the industry and consumers, fostering innovation and maintaining a fair competitive environment while ensuring data security and privacy.

There is a demand from stakeholders for sector-specific regulation in the vehicle market. However, some argue that the focus should be on harnessing the legal framework in place over the next five years, striving for coherence, and supporting the industry in its compliance efforts.

The Commission should prioritise competitiveness and industrial policy in EU policy making. Building a Data Strategy on existing rules, avoiding added complexity, is crucial to achieving this goal. The EU should avoid creating unnecessary regulatory burdens that could hinder the growth and innovation of the connected product industry.

The debate surrounding the Commission's proposal for a regulation for access to vehicle data, functions, and resources continues, with stakeholders and policymakers weighing the potential benefits against the potential risks. The future of this proposal remains uncertain, with the Commission's proposal still on the table.