Motor Vehicles in Europe
Application of European Union Antitrust Rules in the Motor Vehicle Sector
Since the adoption of the new motor vehicle Block Exemption Regulation (Commission Regulation (EU) No 461/2010 of 27 May 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector. Official Journal L-129 of 28.5.2010, p.52) and the Supplementary Guidelines (Supplementary guidelines on vertical restraints in agreements for the sale and repair of motor vehicles and for the distribution of spare parts for motor vehicles; Official Journal C-138 of 28.5.2010, p.16), the Commission’s services have received a number of questions relating to the application of the new framework for motor vehicle distribution and repair and for the distribution of spare parts for motor vehicles. Where these questions have been frequently asked, or are otherwise likely to be of wider interest, they are reproduced below together with answers and explanations.
Several issues were raised in relation to the concern of particular restrictions in the motor vehicle sector that, under certain circumstances, may cause the agreement between the vehicle manufacturer and its authorised dealers or repairers (or eventually with a supplier of spare parts, repair tools or diagnostic, components for the initial assembly of motor vehicles, or other equipment) to infringe EU competition rules. Generally, this will be the case because: (1) the restriction at stake is likely to cause or strengthen the anticompetitive effects of the agreements between the vehicle supplier and its dealers or authorised repairers and spare parts distributors and cause them to be caught by Article 101(1) TFEU; (2) the agreements in question are unlikely to benefit from the block exemption, because of the supplier’s market share; and (3) these agreements are unlikely to benefit on an individual basis from the exception set out in Article 101(3) TFEU. In some other cases, particular conduct may constitute a violation of the prohibition of the abuse by an undertaking of its dominant position, pursuant to Article 102 TFEU.
Vertical Agreements
See more about vertical agreements in this legal European encyclopedia here.
The activities of the Commission’s competition department in the antitrust field involve the application of Articles 101, 102 and 106 of the Treaty on the Functioning of the European Union (“TFEU”).
Vertical agreements in the motor vehicle sector may also benefit from “block exemption”. This is a safe harbour that exempts a whole category of motor vehicle distribution and repair agreements from the prohibition laid down in Article 101(1) TFEU.
Agreements can benefit from block exemption under Commission Regulation 330/2010 or Commission Regulation 461/2010 so long as they do not contain any serious restrictions of competition and also meet the other conditions laid down by the relevant Regulation. One of the tasks of the competition department is to monitor the application of these rules. It does so in close liaison with the competition authorities of the Member States.
Working Group on Technical Harmonization and Motor Vehicles
The working group deals with drafts of proposals for legislation on type approval of cars and their trailers, mopeds, motorcycles, agricultural and forestry vehicles.
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