10. What is a ‘related service’?

A related service is a digital service that can be linked to the operation of a connected product and that affects the functionality of this connected product, for instance by transmitting data or commands to it (e.g. an app to adjust the brightness of lights, or to regulate the temperature of a fridge).

Two basic conditions must be satisfied for a digital service to be considered as a related service:

• there must be a two-way/bidirectional exchange of data between the connected product and the service provider; and

• the service must affect the connected product’s functions, behaviour, or operation.

Determining the ’functions’ of a connected product is an ongoing and evolving task. Practice and courts’ interpretation will play an essential role in further delineating whether a digital service is a related service. The following elements could be useful in further narrowing down whether a digital service is a related service:

• user expectations for that product category;

• marketing accompanying the connected product and/or the digital service;

• contractual negotiations;

• the replaceability of the digital service;

• pre-installation of the digital service on the connected product.

Most but not all digital services that interact with connected products will fall under the category of related services. The following digital services cannot be considered as related services: connectivity, power supply and aftermarket services (e.g. auxiliary consulting, analytics and financial services, and regular repair and maintenance) (cf. Recital 17). To offer a related service, a provider must first receive product data. Once a contractual relationship is established between the user and the provider and a related service is rendered that leads to the creation of data, the provider becomes a data holder.