The CMA has published its recommendation to the Secretary of State for Business, Energy and Industrial Strategy (BEIS) regarding the retained Motor Vehicle Block Exemption Regulation (retained MVBER), which recommends ‘there should continue to be a block exemption and that letting the retained MVBER expire without providing for replacement is not currently appropriate in the UK.’
The CMA consulted on its proposed recommendation that the Secretary of State replaces the retained MVBER when it expires on 31 May 2023 with a UK Motor Vehicle Block Exemption Order.
The consultation ran from 21 July 2022 to 4 October 2022.
The CMA launched its consultation on its proposed recommendations to the Secretary of State for Business, Energy and Industrial Strategy regarding the retained Motor Vehicle Block Exemption Regulation (retained MVBER) and received responses from all interested stakeholders by 22 August. See the received responses here.
These responses have informed the CMA’s final recommendation to the Secretary of State on whether to replace the retained MVBER when it expires on 31 May 2023.
The responses to this consultation will be shared with BEIS in order to facilitate consideration of the CMA’s final recommendation. In addition, responses to the impact questions will be used to inform the preparation by BEIS of impact assessments for any block exemption order the Secretary of State may decide to make.
In an article in Garagewire, Andy Hamilton, CEO, of LKQ Euro Car Parts, said:
“The CMA has recognised the critical role played by independent workshops and bodyshops in providing consumers with choices and, through the competition this creates with dealerships, lower prices.
In particular, we welcome the proposed update to the definition of ‘spare parts’, to include all software, together with activation and configuration codes for replacement parts and components.
Fundamentally, competition is dependent on the existence of a level playing field between authorised and independent operators, which means fair and shared access to essential inputs such as spare parts and technical and vehicle information. The detailed wording of the guidance will therefore be critical.
The CMA clearly acknowledges this and is taking steps to account for the technological developments of recent years – while building more flexibility into the guidance of the proposed new MV-BEO, which will also have a shorter duration, enabling another full review in six years – not ten as was the case under the previous EU regime.”