AI, DIGITAL AND DATA
CONNECTED CAR ACCESS
Access to data
Europe at a crossroads
Laurianne Krid
Director General at Fédération Internationale de l'Automobile (FIA) Region I
Access to data has been a constant battle for FIA Region I over the past 16 years. From efforts to extend the BER – a key piece of competition law – to the adoption of technical legislation like Euro 7, the European Commission has increasingly recognised the need for sector-specific regulation to safeguard the aftermarket. However, the rise of car connectivity now threatens this delicate equilibrium. In Europe, cars have an average lifespan of 12.3 years and often represent a major investment – second only to the family home. The aftermarket plays a crucial role in keeping these vehicles safe and environmentally compliant throughout their long lifetimes.
Unlock innovation
Historically, the Commission has designed legislation to maintain fairness in the automotive aftermarket since the 1990s. Today, car connectivity offers the potential to revolutionise aftermarket services through innovations like predictive maintenance. Despite this high potential value creation, early entrants such as data aggregators have struggled financially (Figure 1).
Our economic study shows that while there are ample opportunities for revenue generation from connected vehicles (Figure 2), consumers have not yet benefited from the full promise of this technology. The rollout of connectivity is hampered by inconsistent data quality, limited real-time access and costly pricing schemes, all of which stifle innovation (Figure 3).
Consumers expectations
In 2022, we surveyed 1 000 consumers across 11 EU countries about their expectations for connected cars. Nearly half of the respondents were unfamiliar with the technology and unaware of whether their vehicles collect or share data. However, about half indicated that the ability to control data portability, switch service providers, and manage third-party permissions would influence their future brand choices. While roughly one third of respondents were open to paying for such services, only 12% were willing to pay a direct fee – 55% preferred payment through data sharing or targeted apps.
Consumers primarily expect connectivity to enhance safety and convenience, with the newer generation showing a greater willingness to pay for services that boost overall convenience (Figure 4).
Source: FIA Region I economic study
Source: FIA Region I economic study
Our study has quantified the impact of the current legislative gaps on data access. If the fleet becomes fully connected by 2050, the conservative cost is estimated at €95bn – an expense that would be shared between consumers and the aftermarket (Table 1).
Table 1: Estimated annual economic impacts for independents and consumers in case the regulatory framework fails to enforce equal access to data
Source: FIA Region I - The automotive digital transformation and the economic impacts of limited data access
Clearly, the imbalances in the market will not be resolved by the Data Act alone; sector-specific regulation on access to car data is long overdue.
A Block Exemption Regulation (BER) in EU competition law provides legal certainty by automatically exempting certain types of agreements, decisions, or concerted practices that might otherwise be considered restrictive of competition under Article 101 of the Treaty on the Functioning of the European Union (TFEU). BERs operate under the presumption that agreements falling within their scope meet the four conditions for exemption specified in Article 101(3) TFEU.
Figure 2: Otonomo financial results (US$ million)
Source: FIA Region I - The automotive digital transformation and the economic impacts of limited data access