The European Union’s top court has ruled that Swedish truck maker Scania must share car data, including vehicle identification numbers, with repair shops and parts distributors. This landmark decision is expected to provide a significant boost to the repair and parts distribution industry, which stands to tap into a market worth billions of euros.
Car services companies have long been advocating for EU laws that guarantee fair access to vehicle data. This has led to a clash with car manufacturers who aim to generate revenue from software products and subscription services fueled by data, covering aspects such as driving habits, fuel consumption, and tire wear.
Scania found itself in a legal battle in a German court after a trade association for motor vehicle parts sued the company for withholding vehicle identification numbers, claiming that this constituted personal data and was therefore subject to EU privacy rules. The German court sought guidance from the European Court of Justice (CJEU), which ultimately ruled in favor of the German trade body.
According to the EU judges, car manufacturers are obligated to grant access to all vehicle repair and maintenance information. They further stated that even if vehicle identification numbers are considered personal data, the General Data Protection Regulation does not exempt car manufacturers from making them available to independent operators.
This dispute over vehicle data ownership highlights the immense potential of the connected car market. Consultancy firm Fortune Business Insights predicts that this market could reach a value of 250 billion to 400 billion euros ($267 billion to $427 billion) by 2030.
Despite the significance of this ruling, EU law does not clearly define data ownership, leading to ongoing conflicts between carmakers and those seeking access to data. The European Commission had intended to establish rules on data sharing by the second quarter of this year but has yet to propose any legislation.
Ultimately, this ruling in favor of independent repair shops and parts distributors underscores the importance of fair access to vehicle data. As the connected car market continues to grow, resolving data ownership issues will be crucial in fostering a competitive and innovative automotive industry.
(Reporting by Foo Yun Chee; editing by Tomasz Janowski)
