On 1 June 2023, The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 was introduced.
Competition law is a complicated beast and much of this new order was inherited from old EU law. It replaces the retained Motor Vehicle Block Exemption Regulation (EUR 2010/461) which was made under EU law and retained in UK law after Brexit but expired on 31st May 2023. This new law, thanks to lobbying from various industry bodies including our friends at the IAAF, has afforded wider protection to our service and repair garages which also means consumers have more choice as to who works on their vehicle. Without the law, consumers would find themselves in the position of being forced to have any work required on their vehicle undertaken only by an authorised agent of the manufacturer. This would clearly limit consumer choice, drive up costs through lack of competition, and mean independent garages could be driven out of business.
We were starting to see a pattern whereby some manufacturers were limiting the technical information available to independent garages and making subtle complications, such as not providing independent garages with the same paperwork as those garages in their own network, in what appeared to be an attempt to void the end customer’s manufacturer’s warranty and so almost punish the customer for not choosing to pay the manufacturer’s higher prices for repair. This is clearly not in the spirit of competition laws which are there to protect consumers.
This updated law brings a new definition of “aftermarket goods” which includes software and liquids which are necessary for the effective operation of the motor vehicle (but not fuel). “Technical and vehicle information” has been replaced by “repair and maintenance information”, which is defined as information that suppliers or their authorised partners use for repair and maintenance services. In short, the updated law goes further in ensuring consumers have more choices and the aftermarket sector has the same opportunities to attract customers as the manufacturer’s chosen franchises and agents.
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