Sector specific rules needed to ensure fair competition

Publication date: 03 June 2008

R2RC acknowledges the ‘open outcome approach’ taken by the Commission in its Evaluation Report but reminds that sector-specific rules for the distribution of spare parts and repair services after 2010 are a necessity.

With regard to the publication of the European Commission’s Evaluation Report on the Motor Vehicle Block Exemption Regulation (EC) N° 1400/2002 (“MVBER”), the members of the Right to Repair Campaign (R2RC) acknowledge that in its Evaluation Report on the functioning of the MVBER, the European Commission does not prejudge a final decision on the outcome of the review.

However, and as revealed earlier, the European Commission reiterated its proposal not to extend the Motor Vehicle Block Exemption Regulation after its expiry in May 2010. Instead, the European Commission suggests
that the Vertical Restraints Block Exemption Regulation (EC) N° 2790/1999, which presently covers distribution agreements outside the motor vehicle sector, would represent an equivalent, but more flexible regime, combined with the general competition rules of Art. 81 and Art. 82 EC and other pieces of legislation.

The R2RC alliance maintains that the MVBER has so far guaranteed freedom of choice for consumers, and furthered the creation of a level playing field for all operators in the automotive sector to the benefit of the consumers. Simply applying the general rules as currently worded and embodied in the Vertical Restraints Block Exemption Regulation (EC) N° 2790/1999 to the automotive sector would be no equivalent alternative.

The members of the Right to Repair Campaign disagree with the Commission’s conclusion that a more effectsbased approach and less regulation would lead to better results for consumers. Rather, more legal certainty would better ensure the coherent application of Community competition law throughout the EU. It would be detrimental for all aftermarket operators and consumers alike to remove rules which provide legal certainty and which have recently established a frame for effective competition in the automotive sector.

AIRC, CECRA, EGEA, FIA and FIGIEFA are of the opinion that if the automotive sector had to rely, as suggested by the European Commission, on many scattered legal instruments, which are still under revision, not even in place or the scope of which is limited, this would create a legal patchwork. Such a legal patchwork would however not represent a satisfactory framework for competition in the markets for new vehicles, spare parts, tools, servicing and repair, and ultimately would threaten consumers’ freedom to purchase their vehicles wherever they like and to have them maintained, serviced and repaired in the workshop of their choice.

Following the invitation of the European Commission, the members of the R2RC will submit their observations on the Evaluation Report by the end of July.

For further information, please visit the R2RC website under www.r2rc.eu or contact Ludovic Basset at the R2RC Secretariat on + 32 2 761 95 10.

The members of the Right to Repair Campaign are :

AIRC – Association Internationale des Réparateurs en Carrosserie
EGEA – European Garage Equipment Association
CECRA – European Council for Motor Trade and Repairs
FIA – Fédération Internationale de l’Automobile
FIGIEFA – International Federation of Automotive Aftermarket Distributors