As car manufacturers expand their range of connected services and subscription-based features, connectivity is becoming an integral part of their commercial offering. This raises a regulatory question and potentially a compliance issue under EU telecoms law: at what point does an original equipment manufacturer (OEM) cease to be a user of connectivity and become a provider of electronic communications services?

Cullen International’s new explainer examines this legal question, finding that classification as a telecoms service under Directive (EU) 2018/1972 (the European Electronic Communications Code, or EECC) depends on commercial substance: who contracts with the end user and who is responsible for delivering connectivity.

As digital services become central to automotive revenue models, telecoms exposure is moving closer to the core of OEM strategy. Offering in-car Wi-Fi hotspots, passenger data packages and connectivity subscriptions may cause an OEM to qualify as a regulated telecoms service provider, thereby subjecting it to various requirements, including notification, transparency and open internet obligations.

Key takeaways
 

• The business model determines the regulatory status. Telecoms regulators assess the substance of the customer relationship, not the technical architecture. An OEM may be treated as a provider of electronic communications services, even if connectivity capacity is purchased wholesale.
• Service character matters. Additional obligations apply to services that entail a higher degree of human interaction, such as infotainment or browsing services. Such services are more likely to be considered as being publicly available, triggering additional obligations under the telecoms framework. By contrast, telematic services with limited human interaction, such as remote diagnostics and battery management, are likely to attract much lighter regulation.
• Internet access is the inflection point. If an offer enables access to the open internet, it will probably qualify as an Internet Access Service (IAS). This will trigger net neutrality duties under the Open Internet Regulation, as well as related compliance obligations.
• Cross-border deployment heightens scrutiny. Embedded eSIM management, centralised service control and long-duration roaming can affect how regulators allocate responsibility and assess compliance risk.

Why it matters

The digitalisation of the automotive industry is blurring the line between device manufacturers and service providers. The regulatory consequences can be significant. When connectivity forms part of an OEM’s consumer-facing proposition, telecoms law applies regardless of who owns radio spectrum or the network infrastructure.

The compliance burden can also extend beyond telecoms service classification. Device approval regimes, privacy frameworks, and lawful access obligations can generate additional regulatory and operational exposure. For OEMs operating across multiple jurisdictions, this cumulative effect can influence platform architecture and go-to-market models.

Background / context

The explainer analyses connected car business models in relation to the EU’s EECC framework and the Open Internet Regulation, explaining how different models may be classified as internet access services, interpersonal communication services, and services consisting wholly or mainly in the conveyance of signals.

The explainer also surveys national implementation approaches across selected EU member states and compares regulatory perspectives in major non-EU markets, illustrating how similar business models can engage different compliance levers across jurisdictions.

Scope

Region: European Union (with selected international comparisons)
Policy area: Internet of Things, Connected Cars
Last updated: February 2026

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