Recent competition law developments affecting the UK and EU automotive aftermarket sector

Companies should be aware of two important recent developments regarding competition law exemptions for vertical agreements:

• On 1 June 2023 the UK Motor Vehicle Block Exemption Order (MVBEO) entered into force. This replaces the EU Motor Vehicle Block Exemption Regulation (MVBER), which had continued to apply in the UK post-Brexit as retained EU law. The MVBEO, which will be in force until 31 May 2029, will ensure the continuation in the UK of an important automatic exemption from the prohibition on anti-competitive arrangements in respect of vertical agreements which meet certain conditions in respect of:
  • the purchase, sale or resale of "aftermarket goods" for vehicles (including spare parts); and
  • the provision of vehicle repair and maintenance services.
• On 17 April 2023 the European Commission adopted a regulation extending the validity of the current EU MVBER for a further five years, so that it will now expire on 31 May 2028. At the same time, the EC also adopted a Communication amending its Supplementary Guidelines on the MVBER.

We consider these developments further in this detailed briefing. If you have any questions or would like to know how this might affect your business please do get in touch.

This briefing was first published on our Automotive Sector Hub on 12 June 2023.

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