If you work in data privacy for a European or global automaker, there’s a good chance you’ve heard of the EU Data Act. But are you aware of the finer details, like how it could affect your role, and what this means for automotive OEMs in general?

Ultimately, the new proposal won’t just change the way you handle and manage data, it could have huge implications on the way you operate too. And even though it’s not likely to be implemented for another couple of years, it doesn’t hurt to be prepared. 

That’s why we’ve created this breakdown. We’ll answer your key questions on the EU Data Act, so you can be ready as soon as it comes into play.

What is the EU Data Act?

The EU Data Act will introduce new rules on who can use and access data generated by the use of IoT products in the EU (excluding the UK). It’s been created as a harmonised framework for accessing and sharing data, one that guarantees users of products or machines – including vehicles – access to the data they generate. It’s intended to give consumers and companies more control over what can be done with their data. 

In addition, the Act will allow users of connected devices to gain access to data generated by them, and make that data available to third parties. It will also allow public sector bodies to access and use certain data necessary in exceptional circumstances, such as public emergencies. The EU Commission views the EU Data Act as a key pillar of the European strategy for data, and a powerful engine for innovation and new jobs.

When will it be introduced?

The EU Commission’s initial proposal for the EU Data Act landed on February 23rd 2022, and is part of the Commission’s plan to create €270 billion of additional GDP by 2028. At the time of the proposal, Thierry Breton, Commissioner for Internal Market, said:

“So far, only a small part of industrial data is used, and the potential for growth and innovation is enormous. The Data Act will ensure that industrial data is shared, stored and processed in full respect of European rules. It will form the cornerstone of a strong, innovative and sovereign European digital economy.”

Although an exact date is yet to be confirmed, the Act is expected to take effect in 2025.

Why is it important for automotive OEMs?

A shake up in the way industrial data is shared and handled is coming. Here are the changes you can expect:

• ‍Design: products should be designed to allow users (consumers or businesses) easy and secure access to the data generated through their usage.‍
• Transparency: before a contract is concluded for a product or service, certain information must be clearly provided.‍
• Sharing data with third parties: data holders must make this information available to third parties of the user’s choice.‍
• Compensation for data: data holders can require reasonable compensation from the data recipient (when it’s a third party) for making the data available.‍
• Sharing data with public bodies: the data holder must provide certain data to public bodies in exceptional circumstances, like a public emergency.‍
• Contractual terms: SMEs can benefit by addressing contractual imbalances, and requiring that the data holder agree with the data recipient the terms for making the data available.

How will it affect OEMs?

While the EU Data Act is tipped to have positive ramifications for the European digital economy, it will undoubtedly bring challenges for data privacy officers and professionals.

These challenges could include an increase in demand for data access, large volumes of contracts to manage, regulatory compliance, managing privacy by design, and data use limitations stemming from the need to declare purposes.

It’s clear that a new way of working isn’t far off, so it’s important that global OEMs can successfully adjust to the new regulations from a compliance, labour and cost perspective.

Adapt and prepare with Wejo

Visit our resources page where we’ll explore the aforementioned challenges in more detail, and discuss approaches for a smooth transition once the Act is in place.