The new Motor Vehicle Group Exemption and its Effects on the Distributors

Sammanfattning: The European Motor Vehicle Industry is complex and plays a significant role in the economic aspects of the common market. The motor vehicles constitute an important part of everyday life for many consumers and are the second largest investment many makes. The legal framework surrounding this industry includes EU's Competition policy, which constitute the third pillar in the Single European Market where the Commission acts as the main enforcer. In this context a group exemption applicable to Article 81 of the EC Treaty has been adopted for this industry. In 1985 was Regulation 123/85 implemented, and at its expiration in 1995 was replaced by 1475/95. This Regulation is currently in effect and due to expire on September 30, 2002. The time is getting closer for the current Regulation to expire and the Commission has decided that it will be replaced by yet another industry specific Regulation. This new Regulation was proposed as a Draft on March 16, 2002 and its context and form will be voted on in end of June or early July. It will be implemented on October 1, 2002. The replacement will constitute a change in the legal environment, which implicitly will affect the industry as well as the common market as a whole. The impact of the changes on distributors is particularly interesting as they are supposed to gain a stronger position against the manufacturers. This thesis will endeavor to depict the Regulation Draft in the context of EU's competition policy and to compare it with the current Regulation 1475/95 and the general Regulation for vertical restraints 2790/99. Based on the information gathered an analysis of the legal effects on the distributors will be performed. And a strategic analysis of the competitive environment will provide a framework to explore the potential impact of the implementation on the distributors competitive environment. Future aspects of distribution will also be explored. Due to the fact that it is a sensitive issue and information has not been readily accessible as well as the fact that the final version of the new Regulation is still in the hands of the Commission, has made this study more speculative in nature. Even if the legal section about the Draft is descriptive and based on facts, it must be noted that it probably is subject to minor changes before its implementation in October. The fact is that changes are due to appear with the new Regulation, that will affect the distributors' competitive strategies, but the extent remains to be seen.