Introduction
The European Commission (“Commission”) is currently evaluating its rules applicable to vertical agreements in the automotive sector. These rules include the Motor Vehicle Block Exemption Regulation (Regulation No 461/2010, “MVBER”) and the Supplementary Guidelines (“SGL”), as well as the Vertical Block Exemption Regulation (“VBER”) and the Guidelines on vertical restraints, as far as they apply to the automotive sector.
In particular, the Commission has launched a public consultation inviting all interested parties to express their views on the functioning of the MVBER, which is set to expire in May 2028. These rules assist companies in the automotive sector to assess the compatibility of their vertical agreements with the cartel prohibition. The evaluation aims to assess the MVBER’s continued relevance and effectiveness in the face of evolving market dynamics, including digitalization, electrification, and new mobility patterns, as stated by Teresa Ribera, Executive Vice-President of the European Commission for a Clean, Just and Competitive Transition: “With this evaluation, we want to make sure that our antitrust framework keeps pace with the rapid changes in the motor vehicle market, ranging from digitalization to new mobility patterns. As part of the evaluation, it is essential to draw on the experiences of various stakeholders — from manufacturers to independent repairers — to have rules that continue to foster innovation and safeguard fair competition in sales, repair and maintenance of motor vehicles.”
The evaluation is linked to the Strategic Dialogue on the Future of the Automotive Industry, which the Commission launched on 30 January 2025, and its Action Plan, which addresses issues relevant to the automotive sector.
As part of the evaluation process, the EU-Commission has launched a public consultation inviting interested parties to express their views on the functioning of the MVBER. It is expected that on the basis of the evaluation and consultation process, the EU Commission will likely decide to amend and further prolong the MVBER for several more years.
This article’s main aim is to address the statements of relevant parties involved in the consultation process. However, in order to understand the statements, this article will in a first step present the MVBER itself and its aims for the automotive sector from a competition law perspective. In a second step, it will then set out the timeline of the consultation phase. Subsequently, it will address the existing statements on the functionality of the MVBER in the automotive sector.
Key facts about the MVBER
What is the purpose of the MVBER?
The MVBER’s primary purpose is to ensure fair competition in the automotive sector by setting out specific rules and exemptions for vertical agreements between vehicle manufacturers, and their authorized dealers and repairers relating to the sale/resale of spare parts of motor vehicles from the general prohibition of such agreements under European Competition law. The Regulation is intended to assist companies to assess the compatibility of their vertical agreements with the relevant competition law provisions, such as Art. 101 Treaty on the Functioning of the European Union (TFEU). Overall, the MVBER seeks to balance the interests of manufacturers, dealers, independent repairers, and consumers, ensuring a competitive and dynamic automotive market in the EU.
When is the exemption applicable?
Simply put, the MVBER exemption for vertical agreements from Art. 101 TFEU is applicable if the agreement fulfils the requirements for a block exemption under the EU-Commission´s “VBER” regime, and if it does not contain any of the so-called hardcore restrictions listed in the Regulation.
Prolongation of the MVBER
The MVBER came into force in 2010 and was initially set to expire on 31 May 2023. On 17 April 2023, after a previous evaluation, it was prolonged for five years, until 31 May 2028. The prolongation was the outcome of the previous evaluation of the framework, which was launched in 2018 and concluded on 28 May 2021, which indicated notably that the motor vehicle market was likely to evolve in the following years, due to the digitalization of vehicles and new mobility patterns in particular.
Consultation phase
Purpose
The public consultation took place to gather feedback from stakeholders in particular, including vehicle manufacturers, dealers, and spare parts manufacturers, as well as feedback from national competition authorities. Other stakeholder groups interested in the evaluation included associations of consumer organizations and academics with a focus on EU competition law and particularly on the motor vehicle sector.
Timeline
All interested parties could submit their comments by end of May 2025. In total, 75 responses were received. The Commission analyzed the responses to the consultation and published a summary of the main points and conclusions.
Relevant statements
Stakeholders involved in the evaluation of the MVBER have shared several key concerns and recommendations, which can be summarized into a single comprehensive point: Ensuring Fair Competition and Consumer Choice in the Automotive Aftermarket. The stakeholders, including Belron, the European Association of Independent Vehicle Traders (EAIVT), FIGIEFA, the Union of the European Lubricants Industry (UEIL), and the Association des Constructeurs Européens d`Automobil (ACEA), collectively emphasize the critical role of the MVBER in maintaining a competitive and consumer-friendly automotive aftermarket. In their submissions they highlight the following commonly shared feedback:
Promoting competition and consumer choice
The MVBER is essential for promoting competition between independent service providers and vehicle manufacturers with their authorized dealerships. This competition ensures consumer choice, leading to lower prices and better service quality.
Access to technical information and vehicle data
Timely and cost-neutral access to technical information and vehicle-generated data is crucial for independent operators. Restricted access hinders their competitiveness and can lead to markets being closed off. The stakeholders call for regulations to ensure fair access to these essential inputs.
Warranty provisions and abuses
There are concerns about warranty provisions that make warranties conditional on the use of branded parts or servicing within a vehicle manufacturer’s network. Stakeholders highlight instances of warranty abuses and call for clearer rules to prevent such practices and protect consumers.
Enforcement and compliance
Stronger enforcement mechanisms are needed to ensure compliance with the MVBER. Increased enforcement would enhance trust in the system and encourage more participation from independent operators. Clearer and simpler compliance processes are also necessary to address issues promptly.
Impact of digitalization and electrification
The stakeholders have discussed the impact of digitalization and electrification on the automotive aftermarket. They emphasize the need for regulations to adapt to these emerging trends to ensure fair competition and innovation, particularly concerning the repairability of electric vehicles and batteries.
Market power imbalances
Significant market power imbalances exist between original equipment manufacturers and independent operators. Revisions to the MVBER are needed to address these imbalances and ensure a competitive landscape. These include revising market share thresholds to reflect the true market power of the players involved.
Support for multi-brand outlets
The protection of multi-brand stores is important for maintaining competition and consumer choice. The absence of provisions protecting these outlets has weakened competition, and stakeholders call for their reinstatement.
Recommendations for improvement
Immediate enhancements to the MVBER are necessary to address anticompetitive behaviors and improve access to technical information for independent operators. The stakeholders suggest assessing whether existing rules and guidelines are sufficient to achieve compliance and address circumstances where vehicle manufacturers have insufficient incentives to comply.
Summary
In summary, the stakeholders collectively advocate for maintaining and updating the MVBER to support fair competition, innovation, and consumer choice in the automotive aftermarket. They emphasize the need for better access to technical information and vehicle data, stronger enforcement mechanisms, and adaptations to address the challenges posed by digitalization and electrification.
It remains to be seen how the Commission will manage to establish a predictable regulatory framework for the rapidly evolving and transforming automotive sector, which will help to support vehicle manufacturers in navigating the challenges of electrification and digitalization. In particular with regard to access to vehicle-generated data, it will be important to see how the general provisions of the Data Act enabling such access will be reflected in the MVBER and the Supplementary Guidelines.
