In 2002 around 100,000 main dealers1 were involved in the distribution of 14 million new registered passenger cars2 throughout the European Union. This impressive fact describes only a small part of one of the biggest industries in the EU. The European car industry is described as a “national champion” among EU competition law experts. However, even the best industry is nothing without an efficient distribution system. Distribution of motor cars in the EU has been governed for nearly 20 years by the legal device of block exemption regulations. The latest block exemption, Regulation 1400/023, came into force on 01 October 2002 and brought fundamental changes. This essay intends to analyse these changes and to predict their likely impact on the car distribution sector. For that purpose it is first necessary to describe the present distribution systems used by car manufacturers throughout the EU (A.I.), to outline the approach of EC competition law towards these specific distribution systems and to explain the Commission’s general policy of granting block exemptions (A.II.). Part B of this paper is concerned with specific issues regarding the new block exemption. Major changes are highlighted and compared with the former regulation. The likely impact of the new regime on the distribution systems in the EU will be evaluated in part C. By taking into account current available data and trends in the motor industry I will give a projection of what outcome the new regulation may lead to.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION.
- A. THE CAR INDUSTRY IN THE EUROPEAN UNION.
- I. The Structure of Passenger Car Distribution in the EU
- II. Applicability of EC Competition Law to the Car Manufacturers' Distribution Scheme
- 1. Particularities of Motor Car Distribution.....
- 2. Detrimental and Beneficial Effects of Vertical Agreements........
- 3. The EC Policy of Granting Block Exemptions...
- B. Article 81(3) EC and Motor Vehicle Distribution............
- I. Block Exemptions in the Automotive Sector -a Historical Outline…......
- II. The New Regulation 1400/02 -General Remarks…………………………..\n
- III. The Changes of Regulation 1400/02 in Detail..\n
- 1. The Distribution System Issue...........
- 2. Abolishment of the Sales-Service Link..\n
- 3. Abolishment of the \"Location Clause\" and other Changes in Favour of the Distributor....\n
- 4. Introduction of Market Share Thresholds...\n
- 5. Multi-Branding.......\n
- 6. Changes for so-called \"Intermediaries\".\n
- 7. Distribution and Access of Spare Parts...\n
- C. THE LIKELY IMPACT OF THE NEW REGIME.\n
- I. The Necessity of a Block Exemption in the Automotive Industry.\n
- II. Future Developments of the Retail Distribution Structure…………………..\n
- 1. Distribution of New Cars.....\n
- i) Selectivity or Exclusivity?..\n
- ii) Danger of Repetition......\n
- (A) The Selective Distribution Scenario.......\n
- (B) The Exclusive Distribution Scenario...\n
- 2. Changes in the After-Sales Market\n
- 3. The Impact on the Distribution of Spare Parts....\n
- 4. Benefits for the Consumer?......\n
- 5. Other Factors.....\n
- CONCLUSION..\n
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay seeks to critically evaluate Commission Regulation (EC) No. 1400/2002, analyzing its fundamental changes and predicting its likely impact on the car distribution sector within the European Union.- The structure and functioning of passenger car distribution in the EU.
- The application of EC competition law to the car manufacturers' distribution schemes.
- The impact of the new block exemption regulation on the distribution system.
- The potential future developments of the retail distribution structure in the automotive industry.
- The likely benefits and drawbacks of the new regime for consumers.
Zusammenfassung der Kapitel (Chapter Summaries)
The essay begins by introducing the European car industry as a significant player within the EU, outlining the impressive number of car dealers involved in the distribution of new vehicles. It then focuses on the structure of passenger car distribution in the EU, emphasizing the role of authorized dealers, importers, and the direct involvement of carmakers in their home countries. The text discusses the nature of vertical agreements between car manufacturers and dealers, highlighting the independent nature of the dealers as economic entities despite the control exerted by manufacturers. Chapter II delves into the applicability of EC competition law to the car manufacturers' distribution schemes, specifically examining the relevance of Article 81(1) EC and its focus on anti-competitive agreements affecting trade between Member States. The chapter addresses the particularities of motor car distribution, including provisions that fix minimum resale prices, territorial protection, and export bans, which are considered restrictions of competition. The third chapter dives into the details of Article 81(3) EC and its application to motor vehicle distribution. It explores the historical context of block exemptions in the automotive sector and examines the key changes introduced by the new Regulation 1400/02. These changes include the abolishment of the sales-service link, the removal of the "location clause," the introduction of market share thresholds, the allowance of multi-branding, and modifications for "intermediaries." The final chapter (excluding the Conclusion) focuses on the potential impact of the new regime on the distribution systems in the EU. It explores the necessity of a block exemption in the automotive industry and projects future developments of the retail distribution structure. The analysis considers both selective and exclusive distribution scenarios, the impact on the after-sales market and spare parts distribution, as well as potential benefits for consumers.Schlüsselwörter (Keywords)
This essay centers around EC competition law, focusing on vertical agreements, block exemptions, and their impact on the car industry in the EU. The text discusses the distribution systems used by car manufacturers, including authorized dealers, importers, and direct sales, and the application of Article 81(1) and 81(3) EC in this context. Key terms like minimum resale prices, territorial protection, export bans, and multi-branding are explored in relation to their effects on competition and consumer benefits. The analysis also considers the potential for future changes in the distribution structure, such as the adoption of selectivity or exclusivity.- Arbeit zitieren
- Rechtsanwalt Karsten Keilhack (Autor:in), 2003, Critically evaluate Commission Regulation (EC) No. 1400/2002 and its likely impact on the system for retailing and distribution of motor vehicles in the European Union, München, GRIN Verlag, https://www.grin.com/document/22897
