The CMA is recommending that the government replace the Motor Vehicle Block Exemption (MVBER) with a UK Motor Vehicle Block Exemption Order (MVBEO).
The existing MVBER, which provides a block exemption for vertical agreements relating to the purchase, sale or resale of spare parts for motor vehicles and to the provision of repair and maintenance services for motor vehicles, expires on 31 May, 2023.
The CMA (Competitions & Market Authority) will now ask the government to replace it with a new order that is more suitable to British businesses and customers, which would be in place until 31 May, 2029.
This follows consultation with the industry, including respected bodies such as the ABI and Thatcham Research, the SMMT, the Independent Garage Association, the RAC and UKAFCAR.
The CMA said, “Given the strong evidence and views in favour of a block exemption for motor vehicle aftermarket agreements, the CMA is recommending that 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.
“However, the evidence we have seen also indicates that the retained MVBER regime should be revised in certain respects.”
This includes issues relating to the definition of ‘spare parts’ and access to technical and vehicle information.
The CMA added, “The CMA is conscious that there may be advantages in divergence from the EU in certain circumstances – for example to address features specific to UK markets and better protect UK consumers.
“Equally, the CMA recognises that, all things being equal, there can also be benefits in consistency between the EU and the UK block exemptions, particularly for the various businesses with activities in both the UK and the EU (eg by reducing administrative burdens and compliance costs).
“When deciding about how to best address the various substantive issues at play we have sought to be guided by what is best for UK consumers and businesses when balancing these considerations.”
