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Data Governance in Connected Cars: The Problem of Access to In-vehicle Data

Author

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  • Wolfgang Kerber

Abstract

Through the application of the technological solution of the “extended vehicle” concept the car manufacturers can capture exclusive control of the data of connected cars leading to serious concerns about negative effects on competition, innovation and consumer choice on the markets for aftermarket and other complementary services in the ecosystem of connected and automated driving. Therefore a controversial policy discussion has emerged in the EU about access to in-vehicle data and the connected car for independent service providers in the automotive industry. This paper claims that this problem should be seen as part of the general question of the optimal governance of data in the ecosystem of connected and automated mobility. The paper offers an overview about this policy discussion and analyzes this problem from an economic perspective by using a market failure analysis. Besides competition problems (esp. on markets for aftermarket and other services in the connected car) also market failures in regard to technological choice (extended vehicle vs. interoperable on-board application platform) and information and privacy problems (“notice and consent” solutions) can emerge, leading to the question of appropriate regulatory solutions. The paper discusses solutions through data portability, data rights, competition law, and recommends a sector-specific regulatory approach.

Suggested Citation

  • Wolfgang Kerber, 2018. "Data Governance in Connected Cars: The Problem of Access to In-vehicle Data," MAGKS Papers on Economics 201840, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:201840
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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2018/40-2018_kerber.pdf
    File Function: First 201840
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    Citations

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    Cited by:

    1. Charlotte Ducuing, 2020. "Data as infrastructure? A study of data sharing legal regimes," Competition and Regulation in Network Industries, , vol. 21(2), pages 124-142, June.
    2. Budzinski, Oliver & Gruésevaja, Marina & Noskova, Victoriia, 2020. "The economics of the German investigation of Facebook's data collection," Ilmenau Economics Discussion Papers 139, Ilmenau University of Technology, Institute of Economics.
    3. Wolfgang Kerber & Daniel Moeller, 2019. "Access to Data in Connected Cars and the Recent Reform of the Motor Vehicle Type Approval Regulation," MAGKS Papers on Economics 201915, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    More about this item

    Keywords

    data governance; connected cars; data economy; data access;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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