The Competition and Markets Authority (CMA) has recently opened its consultation on the draft guidance that will accompany the Motor Vehicles Block Exemption Order (MVBEO). The MVBEO aims to exempt certain motor vehicle aftermarket agreements from the Chapter I prohibition of the Competition Act 1998. The guidance seeks to provide clarity on how the CMA applies the Chapter I prohibition in CA98 to motor vehicle aftermarket agreements, including vertical agreements relating to the purchase, sale, or resale of aftermarket goods and the provision of repair and maintenance services for motor vehicles. The consultation is set to end on 16 May 2023, 5:00 pm.
The Chapter I prohibition of the Competition Act 1998 prohibits agreements between businesses that restrict competition in the UK, unless they meet the conditions for exemption in section 9(1) of the Competition Act or are otherwise excluded. An agreement can be exempted from the Chapter I prohibition if it creates sufficient efficiencies and benefits that outweigh any anti-competitive effects. A “block exemption” regulation automatically exempts agreements of a particular category from the Chapter I prohibition if the agreement satisfies the conditions set out in the block exemption regulation. This provides legal certainty for businesses.
The primary objective of the guidance is to explain how the CMA applies the Chapter I prohibition in CA98 to motor vehicle aftermarket agreements, including vertical agreements relating to the purchase, sale, or resale of aftermarket goods and the provision of repair and maintenance services for motor vehicles. The draft guidance also describes the application of the proposed MVBEO to motor vehicle aftermarket agreements and some aspects relating to the sale and purchase of vehicles. The guidance intends to help businesses assess these agreements to establish whether they fall within the scope of the MVBEO and how to assess certain vertical restraints under the Chapter I prohibition in CA98.
The MVBEO exempts motor vehicle aftermarket agreements if they meet the general conditions relating to vertical agreements set out in the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (the VABEO). Therefore, the draft guidance should be read in conjunction with the VABEO and the VABEO guidance.
To ensure transparency and openness, the CMA will publish non-confidential versions of responses on their webpages. Respondents who consider their response as sensitive and do not wish it to be published can provide a non-confidential version of their response, which omits the sensitive material, and explain why they regard it as sensitive. Respondents can also choose to remain anonymous.
The responses from the consultation may be shared with the Department for Business and Trade to facilitate the preparation of the final version of the MVBEO. Interested parties can send their response to mvberreview@cma.gov.uk and contact the CMA with any queries using the same email address. The consultation will close on 16 May 2023, 5:00 pm.
See the Draft CMA Guidance on Motor Vehicle Agreements and Draft CMA Guidance on Motor Vehicle Agreements Consultation Document
Source www.gov.uk



