A recently released impact assessment regarding the future of the European Motor Vehicle Block Exemption Regulation finds that the aftermarket will suffer from competition shortcomings to a greater extent than the primary market, according to the European Commission. The Block Exemption, which is said to increase competition by offering consumers more choices when purchasing parts and repair services, expires May 31, 2010.

In the past months, international auto repair association AIRC says it has repeatedly emphasised with its partners in the Alliance for the Freedom of Car Repair (AFCAR) the need for unrestricted access to technical information, the necessity to uphold the freedom to source and supply automotive spare parts or the need to maintain consumers’ rights during the vehicle’s warranty period.

"Clearly worded hard-core restrictions are crucial for car body repairers operating in the market," states a recent release.

The European Commission outlines two policy options for the aftermarket, i.e. the application of the general competition rules in conjunction with sector-specific guidelines and/or a sectoral block exemption regulation.

The release continues: "AIRC considers that a sector-specific regulation is the most suitable legal form to deal with the specific problems affecting the automotive aftermarket to date. Supplementary guidelines on the application of competition law to the automotive sector, as well as enforcement actions, are a necessary complement to provide more detailed clarifications for stakeholders, and to ensure the proper functioning of competition."

AIRC says it welcomes the Commission’s view on competition shortcomings in the aftermarket and favors the application of modernized sector-specific rules as from 2010. The group also calls upon the Commission to use the next months to tackle the deficiencies of the current Block Exemption to create more up-to-date, more robust and more complete rules for the aftermarket.

For more information, visit http://ec.europa.eu/competition/sectors/motor_vehicles/block_exemption.html.