The Independent Automotive Aftermarket Federation has issued a stark warning about the dangers that abolishing, or diminishing, current Block Exemption regulation could have on the independent automotive aftermarket. The warning comes as the European Union has launched a public consultation on the crucial subject.

Lawrence Bleasdale, of the IAAF board and council, believes Block Exemption regulations, due to expire in May 2023, are central to ensuring a level playing field in the automotive aftermarket. He commented, “The Motor Vehicle Block Exemption Regulation (MVBER) needs to be maintained and modernised. It is the central piece of legislation, ensuring a certain level playing field for competition in the automotive aftermarket, between independent operators and vehicle manufacturers and their authorised networks."

He added, “Abandoning the MVBER and its principles in 2023 would put us back decades and increase the vehicle manufacturers monopoly of the aftermarket, threatening the very existence of the independent aftermarket. These regulations have provided independent garages protection and the ability to successfully access newer vehicles, bringing about new skills and standards. If they were to disappear, there is no quick workaround.”

Block Exemption regulations contain essential provisions, ensuring the servicing of vehicles under warranty, the fair trade of spare parts and the access to technical information.

The European Commission public consultation, aims to assess whether and to what extent the objectives of the Block Exemption are fulfilled. A Commission statement said, “The objective of this consultation is to collect in-depth and high quality facts and evidence, on the key competition issues arising in vertical relationships on the motor vehicle distribution and after-sales markets, from the perspective of stakeholders.”

The Commission will, based on submissions, draw up an evaluation report on Block Exemption operation by 31 May 2021. This will play a key role in deciding if the regulations are to be maintained, updated or abolished.

Parts manufacturers, distributors and repairers are all part of the consultation target audience and any interested party, including Independent garages, can contribute to the consultation by filling in the online EU questionnaire. The submissions can be made here and must be completed before 25 January 2021.

Find out more about Block Exemption in an AutobizIreland video interview with IAAF CEO Wendy Williamson here.