Things to Come

The Commission has now revealed its plans for motor vehicle distribution for the next few years. It has taken me some time to find time to write about it - there are too many other demands on my time, and every time I look at the volume of paper that the block exemption consultations generate I recoil in horror. So it is past time for me to write about them - and as I become more familiar with what is proposed the more comments occur to me.
First, though, a note on what is proposed. Most readers will probably be familiar with all this. The idea of finding a place for motor vehicle distribution agreements in the large safe harbour afforded by the vertical restrains block exemption (Regulation 2790/1999) rather than continuing to maintain a smaller safe harbour (a safe marina, perhaps) specially designed for them has been floating around for a long time. The Commission's latest plan to do precisely this was made public on 21 December: here is a link to the press release.
The idea is to wait three years before making the change for the vehicle market (or primary market, as it is being called: the terminology changes with bewildering frequency, and another example is the change from the vertical restraints block exemption to "general" block exemption). This is because, though it seems contrary to 25 years' experience, the vehicle market is considered to  be competitive, with low margins and competitive prices. Amazing. On the other hand, the aftermarket (thank goodness we can still use that expression) is highly brand-specific and less competitive, and the Commission thinks it would benefit from being brought sooner into the general safe harbour. Or perhaps that consumers would benefit from this. So that change is going to happen on 1 June, but don't worry that things are going to change dramatically, because there will still be a "mini-block exemption" (a species of legislation unknown to the Treaty on the Functioning of the European Union, another new piece of terminology though one that corresponds to a substantive change too) which will contain the special rules that we have come to love over the history of the block exemption.
Right, that's what's happening in general terms. I am now busy writing up the discussion of the new proposals at last week's Motor Law conference, and I'll post comments about specific matters as and when they occur to me. My subjective views aren't really appropriate for inclusion in what are supposed to be the proceedings of the conference.