The European Union (EU) Data Act, set to take effect on 12 September 2025, is a landmark regulation designed to create a fairer and more competitive data economy within the EU. By establishing clear rules for accessing and using data generated by connected products, this regulation gives users greater control over their data while fostering innovation and competition.
The Act requires automakers to open their data ecosystems to third parties under fair and transparent conditions — fundamentally changing how many automakers manage vehicle-generated data. Ultimately, it empowers vehicle owners with sovereignty over their data, compelling automakers to embrace a more user-centric data landscape.
We believe the EU Data Act is an essential step toward an accessible and standardized data ecosystem that benefits drivers, developers, and automakers alike.
It's possibly one of the most transformative shifts in the industry since Smartcar was founded.
By mandating fair and open data access, it has the potential to redefine how mobility services, vehicle servicing, energy applications, and connected vehicle experiences are built and delivered. Rather than a hurdle, this legislation can catalyze automakers to engage drivers fully in connected car services and software-led innovation.
Keep reading to hear my take on the implications of the EU Data Act on the future of connected cars and how the Smartcar platform can help automakers meet the requirements of this new data landscape.
The challenge is real, but so is the opportunity
It’s hard for developers and automakers to share data effectively today.
For years, automakers have operated within closed ecosystems, and many of their processes, frameworks, and infrastructure are not designed to support data access for multiple third parties. Many automakers would have to overhaul their entire data infrastructure of fragmented APIs and data formats to achieve the interoperability outlined by the EU Data Act.
But it’s a challenge that when overcome, will strengthen the position of automakers in the connected car ecosystem.
The EU Data Act is an opportunity for automakers to become key players in a much broader ecosystem of revenue-generating applications and solutions.
Rather than falling behind new tech entrants in the automotive space, automakers can reimagine partnerships with in-demand consumer software. Standardized vehicle data that’s secure, consent-based, and accessible to third-party developers allows automakers to participate directly in valuable new services built on top of vehicle data.
The EU Data Act shifts data control to drivers, enabling them to actively participate and engage with evolving mobility technology. We have proof that vehicle owners want to get more value from this innovation.
When we surveyed 1,000+ drivers in North America and Europe about what they recognized as valuable use cases for vehicle data, they said:
- Auto insurance: Drivers want usage-based insurance with transparent pricing, easy claims, and access to in-network repair shops.
- Repair and maintenance: Drivers want predictive maintenance alerts and easy scheduling for repairs.
- EV charging optimization: EV owners want cheaper, more efficient charging with rewards programs, smart scheduling, and smart home integration.
Data standardization is the catalyst for all these applications, allowing drivers to control who uses their data and how it’s shared. At Smartcar, we’re excited to help bridge automakers to this ecosystem and tap into this audience of satisfied and engaged consumers.
Smartcar helps automakers meet EU Data Act requirements
The EU Data Act lays the groundwork for a proliferation of data-driven services – many not even imagined yet – built on the back of connected car data.
Forward-looking automakers plan for this by evolving their role: from vehicle manufacturers to data platform providers that engage drivers throughout a vehicle’s lifecycle.
The EU Data Act mandates a shift in how automakers design, manufacture, and manage data generated by their vehicles. Automakers are rightfully concerned about the upfront investments that will go into developing secure APIs and upskilling engineers to adhere to these data governance frameworks.
And then there are the long-term costs associated with integration maintenance and management as automaker software evolves.
Smartcar simplifies data sharing for automakers and developers while prioritizing driver privacy and control. Our architecture inherently aligns with the EU Data Act's consent-driven and secure data sharing goals.
Smartcar is a credible partner for navigating the EU Data Act.
With over a decade of expertise in mobility data integration, Smartcar’s platform. Our data architecture is designed to integrate with our partners' existing systems, supporting both centralised and distributed data lake models.
Key features for compliance include:
- Regulatory compliance framework: A robust platform to extract, manage, and supply defined data to authorized users, and third parties.
- Access management and consent: Vehicle owners are provided with an explicit consent flow to authorise or deny data sharing with third-party applications and request access to their vehicle data.
- Developer portal: A developer portal to enable independent developers to register, build, and manage applications connecting to vehicles with the same rigorous permissions, consent, and security standards Smartcar provides.
- Documentation and support: Comprehensive API documentation, developer tools, and incident management for seamless integration and ongoing support.
- Compliance and security: Maintain historical records of consents and data transmissions. Certified to the highest standards, including SOC 2 Type II, GDPR, ISO 27001, ISO 27701, and EU-US DPF.
A new ecosystem born out of the EU Data Act
For about a decade, we’ve been advocating a future of mobility where automotive data will empower innovation and driver freedom.
The EU Data Act fosters a driver-centric mobility data ecosystem — one where drivers can seamlessly travel and optimize their experiences along the way, retaining the mobility services and data preferences that make the most positive impact on everyday life.
It’s also important to note that the impact of this legislation is unlikely to be confined just to Europe. The automotive industry needs to prepare for a shift in consumer expectations and regulatory priorities globally.
- Regulatory convergence: The EU Data Act could very well influence US policymakers to adopt similar legislation, much like how GDPR influenced CCPA. The Right to Repair movement already shares a common thread with the EU Data Act, in which both regulations prioritize consumer autonomy over their possessions’ data.
- Consumer pressure: As consumers become more aware of their data rights, it won’t be surprising to see them demand greater control over their vehicle data — regardless of where they live. It’s not hard to imagine. Although open banking was a regulatory push in Europe, consumer demand accelerated how the US embraced open banking.
Automakers can embrace openness when facilitated by Smartcar, creating meaningful alliances with third-party developers and service providers. We invite automakers to partner with us and turn this new regulatory landscape into a catalyst for growth.
Reach out to me or our VP of Partnerships, Sarah Larner, to learn more. Let's chat!
