BRUSSELS, March 31 (Reuters) – Auto services groups warned on Friday that a stalled EU proposal to ensure fair access to valuable vehicle data could pave the way for unfair competition from Chinese technology companies and North American
The vehicle data battle between automakers and a coalition of insurers, leasing companies and repair shops highlights the huge potential of the connected car market, which consultancy Fortune Business Insights says could grow to 250 billion-400 billion euros ($272 billion-435 billion) by 2030.
Automakers, who own data on their vehicles covering everything from driving habits to fuel consumption and tire wear, are looking to generate billions from software products and subscription services powered by the data.
The European Commission had originally planned to adopt rules on how data should be shared in the second quarter of the year, according to its agenda, but has yet to present a legislative proposal.
Automotive service groups are already concerned about the small number of industry players with access to the data, said Benjamin Krieger, general secretary of the European Automotive Suppliers Association (CLEPA).
Unfair access could soon mean the sector “will be dominated by US and Chinese players,” he told reporters.
Another problem, which the legislation could solve, is non-standardized data, said Laurianne Krid, director general of the Federation Internationale de l’Automobile, which promotes safety in motor sports.
In turn, automakers said the Commission’s proposed Data Act gives users control over data generated by vehicles, providing third parties with fair and non-discriminatory access to data.
Krieger said he does not address the specifics of the auto industry. “It doesn’t reflect the technology and the competitive situation,” he said.
The Commission did not immediately respond to a request for comment.
Alphabet’s Google ( GOOGL.O ) has already established itself in the market, chosen by General Motors to develop infotainment systems for future electric vehicles as the U.S. carmaker ditches Apple technologies CarPlay and Android Auto.
Last month, Mercedes Benz ( MBGn.DE ) teamed up with Google to offer traffic information and automatic diversion from its cars.
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Reporting by Foo Yun Chee; Edited by Jan Harvey
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