Press Release: Antitrust: Commission proposes future competition law regime for motor vehicle sector

The European Commission set out policy orientations for the future legal framework for motor vehicle distribution and after sale services agreements after the expiry of the current Block Exemption Regulation (BER) in May 2010. The policy orientations, on which comments are requested, are outlined in a Communication adopted on 22 July, 2009, which draws a basic distinction between issues arising in the primary market for the sale of new vehicles, where it has found no indications of significant competition shortcomings in the EU, and those which may affect consumers in the so-called 'after market' (after-sales service and repairs), where competition is less intense. The Commission's policy orientations recognised that the general rules on vertical restraints (i.e. agreements between firms at different levels of the production and distribution chain) can protect the primary market and, at the same time, aimed at improving the protection of competition in the aftermarket. The Commission acknowledged the need for a smooth transition with regard to the primary market and announced its intention to propose to extend the respective provisions of the current Regulation for three years.

European Commission: MEMO/09/348: Antitrust: Commission proposes future competition law regime for motor vehicle sector – frequently asked questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/348&format=HTML&aged=0&language=EN&guiLanguage=en

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