Intervention and the Internal Market: Contemporary European Competition Initiatives Concerning Distribution in the Market for New Cars

"This article is divided into seven substantive sections. Section B provides a very brief description of EU motor vehicle distribution and highlights in the process its typical types of vertical agreements. Section C describes the general EC approach to vertical distribution agreements so as to provide context for the more specific examination concerning the exemption of vertical agreements in the motor vehicle industry. Section D offers an overview of the relevant EC (competition law) decisional practice and jurisprudence specific to the market for new motor vehicles. Section E outlines the Commission block exemption regime for the distribution of motor vehicles within the EC as it stood at the beginning of the new millennium. Section F highlights the main problems associated with the operation of the former block exemption regime, including those identified by the UK authorities. Section G details the latest competition initiative concerning the distribution of motor vehicles that was undertaken by the Commission, namely the 2002 Motor Vehicle Block Exemption. Finally, in Section H, a critical analysis is carried out concerning the latest EC development. While both the substance and nature of the initiative are considered, the analysis is confined to its “competition” provisions. Observations on its apparent impact on consumer welfare in the internal market for new cars are also offered in this final section."