Monday, 13 July 2009

Whither or wither the block exemption?

Is anything actually happening with the block exemption at the moment? My Google Alerts aren't producing much material.

The other day, Profit Training posted a blog entry about the extended timetable, drawing on material from ICDP and stressing the detrimental effect of the uncertainty. The date for the publication of proposals has slipped, with the Commission apparently doing what it can to keep the pot boiling by releasing on its web site a synopsis of the roundtable discussions from February. The latest gossip (reported by Profit Training) suggests that we'll finally see something later this month.

Also recently, the Britannia Radio blog has published (with scant regard, it seems, for copyright) the briefing offered by the House of Commons Library for Memebrs of Parliament on the effect of the block exemption on the independent garage sector. It rehearses the familiar arguments about the need to preserve access to technical information, but the government view it sets out - that they don't really want the BE renewed, but some minimal regulation might be needed and something is certainly necessary to preserve access to existing technical information - sounds like last year's.

When Regulation 123/85 expired, an extension was necessary before 1475/95 was put in place. When 1475/95 expired, the Commission had to extend it before it could put the present block exemption, 1400/2002, in place. Why should anyone be surprised that the Commission is not ready with the replacement for that regulation? Less than a year to go before the expiry date on the face of the legislation (31 May 2010) with (on the most optimistic view) a year's notice needed to terminate old agreements, and we are still waiting. Surely it's time the Commission announced what everyone can see, that the present regulation is going to have to be extended?

Or will the industry be expected to operate for the interim on the basis of "legal exemption" under Article 81(3), effectively assuming that compliance with the rules set out in the block exemption even if they have expired is enough to satisfy the general requirements for exemption from the Article 81(1) prohibition?

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