Yes, it is required by regulation established many years ago. There is dedicated spectrum for it, so that it doesn't overlap with existing networks. Both the automotive company and the government are entitled to that data. Many cars also use normal mobile spectrum because that is actually available everywhere and works. The explicit scope of use, beyond collecting operational data, is law enforcement and traffic control. Cars can take commands over-the-air via this data link.
This has been pushed by governments for 20+ years. Now that the technology has caught up, automotive OEMs are finding their own revenue-generating uses for this data.
Umm... I'm pretty sure cellular modems have not been _standard_ in all Hondas until about 2018, if in fact they are standard now. My 2019 Honda Ridgeline has only WiFi and bluetooth, not cellular, according to my Hondalink app.
The exceptions seem to be the "Elite" and "Touring" models of Hondas, which started using the Qualcomm Snapdragon 4G LTE cellular modem in 2018 as part of user-accessible telecom services that resemble Ford's OnStar.
It looks like the modem is part of the Telematics Control Unit ($500 to replace). The real question is, when did TCUs start sending personal driving data to Honda? And when did Honda start selling that and other personal data to other companies?
This has been pushed by governments for 20+ years. Now that the technology has caught up, automotive OEMs are finding their own revenue-generating uses for this data.