Navigating the Digital Services Act - A New Era for Connected Car Services

Enacted on 19 October 2022, the DSA aims to create a safer, more transparent online environment by establishing stringent requirements for digital service providers. Key provisions include content moderation, transparency reporting, data protection, and liability exemptions for intermediaries. The regulation's reach extends to any service offered within the EU, regardless of the provider's location, provided there is a substantial connection to the Union. But what are the implications for connected car services?

Data Protection and User Privacy

Connected car services generate vast amounts of data, including personal and sensitive information. The DSA reinforces the importance of adhering to the General Data Protection Regulation (GDPR) standards, which mandate robust data protection measures. Vehicle manufacturers and service providers must ensure that data collected through vehicle sensors, infotainment systems, and telematics is securely processed and stored.

For example, a connected vehicle equipped with an advanced driver-assistance system (ADAS) collects data on driving behaviour, location, and vehicle performance. Under the DSA, the manufacturer must implement stringent data encryption and access controls to protect this information from unauthorised access, especially given the increasing sensitivity of personal data generated by connected car services in an effort to increase personalised in-vehicle services for motorists.

Content Moderation and Liability

The DSA requires digital service providers to implement effective content moderation practices. For connected vehicles, this would relate to services integrated within the vehicle, such as social media access or navigation systems that allow user-generated content. Providers must establish mechanisms to report and act on illegal content swiftly, to protect the integrity of connected car services.

A good example of this would be in-car voice assistance functions that are specifically linked to the in-car platform that are not mirrored applications (i.e. "Hey Google" from a phone) and therefore not protected by a third-party platform upon which it is hosted. Service providers linked to proprietary OEM functions must ensure content moderation systems are developed to identify and remove illegal content, such as hate speech, in compliance with the DSA, and thereby ensure connected vehicles remain a safe environment for users.

Transparency and User Rights

Transparency is a cornerstone of the DSA. Providers of digital services for connected vehicles must clearly communicate their terms and conditions, particularly regarding data usage and content moderation policies. Users should be informed about how their data is collected, processed, and shared within the services. This doesn't have to be onerous, however, the ability to adjust such settings must be as frictionless as is practical.

Innovation and Compliance

While the DSA imposes strict compliance requirements, it also encourages innovation by reducing regulatory fragmentation across the EU. This presents an opportunity for vehicle manufacturers and service providers to develop new, compliant digital services that enhance the connected vehicle ecosystem. For example, a manufacturer developing features to integrates smart home controls with infotainment systems. By ensuring compliance with the DSA, the manufacturer would be able to roll out such features across the EU, offering a consistent and secure user experience for consumers in individual member states.

What are the actions for Vehicle Manufacturers and Service Providers?

Manufacturers and service providers must prioritise data security by adopting advanced encryption, access controls, and regular security audits for their connected car services. Compliance with both the GDPR and DSA is critical to maintaining user trust and avoiding significant penalties, particularly in the context of connected vehicles.

Furthermore, service providers must establish clear guidelines and automated systems for content moderation, ensuring compliance with the DSA’s requirements. Regular updates and audits of these systems are essential to address new types of illegal content that might arise in the digital services integrated within connected vehicles. Clear and accessible terms and conditions are vital in this regard, so regular updates and notifications about changes to terms and conditions are necessary to keep users informed.

What has been the impact of the DSA on connected car services?

The Digital Services Act heralds a new era for connected vehicles, vehicle manufacturers and third-party service providers must adapt to these requirements, ensuring compliance whilst protecting and maintaining innovation. Understanding the DSA will not only ensure compliance but also position OEMs to thrive in a rapidly growing and interconnected digital ecosystem that includes connected car services.