Data Act aims to ensure fair access to and use of data

November 2021

The European Commission’s plans could impact all types of data generated by leased and rented assets and Leaseurope is working to ensure that the specificities of our sector and the owner/user dynamic is taken into account, particularly for in-vehicle data.

Connected brain

Ongoing legislative plans

At the end of the year, the European Commission will publish their new Data Act which addresses data access and use, particularly for business-to-business (B2B) and business-to-government (B2G) scenarios. This Data Act may be complemented by sector specific regulation, with the automotive sector mentioned explicitly. The initiative seeks to enable all actors to benefit from big data/machine learning and allow data driven innovation. This is particularly important now given the digital transformation of business and ecosystems, with data generated from internet of things (IoT) and industrial applications expected to increase exponentially in the coming years. Clarity of B2B data access rules is required and existing rules on data privacy need to be respected.

Smart contracts (using blockchain technology) may provide a technical means to enable data sharing, while protecting IP rights & contractual terms. The European Commission could support the use of smart contracts by imposing a legal requirement to use standards developed by European Standards organisations. This would help ensure interoperability and scalability across sectors and borders. At present, GDPR has left it up to industry players to define interoperability standards which enable data portability. However, lack of technical interfaces can make it difficult to offer certain services that require real time data flows, such as preventative maintenance, which can lead to lock in and hamper innovation.

This new legislation requires that the Database Directive be reviewed in order to ensure it doesn’t become an impediment to fair data access. The Commission has recognised that any imbalance in negotiation power risks the data holder imposing discriminatory terms for access to data, creating impediments to business with existing players being pushed out or new entrants being prevented from joining the market. The requirements of the Trade Secrets Directive need to be considered too in this light.

Specificities of leased and rented assets need to be taken into account

Leaseurope has shared our views with the European Commission that the specificities of all types of connected leased and rented assets needs to be addressed, as well as calling for a specific framework for the automotive sector. For instance, “in-vehicle” data is a key component in promoting innovative mobility solutions and can create an uncompetitive marketplace if not handled correctly. Ultimately the best interests of the consumer and the principles of fair and competitive marketplaces should be the driving force behind any legislative initiatives in this area. With this in mind, all data generated by leased and rented assets should be owned/controlled by the driver/owner/operator, including leasing and rental companies.

Leaseurope has also commented on the upcoming review of the Database Directive, which is relevant for our sector when it comes to Machine Generated Data from all types of leased and rented assets. In these cases, data are not generated for the purpose of generating data per se. As such we do not believe these data should be covered by sui generis rights as the investment was made for a purpose other than building a database.