EU Launches Public Consultation on Automotive Competition Rules

The European Commission has initiated a public consultation aimed at assessing the effectiveness of competition regulations governing vertical agreements within the automotive sector. This move is part of a broader evaluation of the Motor Vehicle Block Exemption Regulation (MVBER) and its Supplementary Guidelines (SGL), which were updated in April 2023. Additionally, the review will analyze the impact of the Vertical Block Exemption Regulation (VBER) and the Guidelines on Vertical Restraints in the industry.

Gathering Stakeholder Input

According to a statement from the Commission, the consultation is open to key industry participants, including vehicle manufacturers, suppliers, independent repairers, consumer organizations, and other relevant stakeholders. These groups are invited to provide feedback on how the current regulations influence competition in the sector. The MVBER, which offers guidance on the application of Article 101(1) of the Treaty on the Functioning of the European Union (TFEU) to vertical agreements in the automotive industry, is set to remain in place until 31 May 2028. The Commission aims to determine whether the existing regulatory framework remains suitable given the technological and market shifts underway.

Ensuring a Competitive Automotive Market

Per a statement from the Commission, this review aligns with the broader objective of fostering a competitive and innovative automotive market. Alongside the consultation, the Commission launched the Strategic Dialogue on the Future of the Automotive Industry on 30 January 2025. Insights from this initiative will shape an upcoming Action Plan designed to address industry challenges such as technological advancements, resource accessibility, and regulatory stability.

Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition, emphasized the importance of adapting antitrust regulations to the evolving market landscape, stating that the evaluation seeks to ensure that competition rules continue to support innovation and fairness in vehicle sales, repair, and maintenance.

Review Process and Next Steps

The Commission’s assessment follows a prior evaluation initiated in 2018, which led to the five-year extension of the MVBER in April 2023. The current evaluation, launched on 18 January 2024, includes a call for evidence issued on 27 May 2024. It will scrutinize the effects of the 2023 amendments to the SGL while forecasting market developments through 2028.

As part of the process, the Commission will work closely with national competition authorities and the Joint Research Centre to analyze sector-specific data, particularly in relation to digital transformation within the automotive industry. Stakeholders have until 23 May 2025 to submit their feedback via the Commission’s “Have Your Say” portal, where all contributions will be made publicly available in their original languages.

Following the consultation period, the Commission will review the responses and publish a summary of key insights.

Source: Asset Finance Connect