Car importers change their practices as a result of a Polish Competition Authority investigation into repair practices in the automotive sector
Written By
Earlier this month, the Polish Competition Authority (UOKiK) announced that it conducted a market survey of the automotive sector and, in the context of this study, it also analysed practices applied by car importers. Overall, UOKiK checked 14 car importers and more than 70 car dealers and authorised service stations (ASO).
The identified practices raised UOKiK’s concerns as they could amount to potentially restrictive agreements between car importers and ASOs. Importers of five OEM brands used to require car buyers to perform technical inspections only at ASOs so that they would not lose the warranty or other preferential commercial terms. The contested practices covered the following:
- Some importers of European vehicles offered their clients an additional paid service in any ASO after the basic warranty period expired, provided that all other technical inspections – during the basic warranty period – are carried outat the ASO.
- An importer of non-European vehicles required its buyers to carry out annual inspections only at its ASO in order to maintain the warranty.
UOKiK did not initiate any antimonopoly proceedings as the importers have changed the contested practices. The importers informed their customers of the changes either by sending out emails/text messages or by offering them to sign an addendum to the warranty book.
As a result of UOKiK’s intervention, the buyers who service their cars outside the ASOs, do not automatically lose the rights under the basic warranty or the additional repair service agreement.
In its press release, UOKiK noted that competition between ASOs and independent repairers is beneficial to the market. Independent repairers provide competitive pressure because their business models, as well as related operating costs, are different from those adopted by the ASOs. Also, independent repairers have greater access to aftermarket parts that are different from OEM parts and, consequently, clients may have a wider choice of parts.
UOKiK’s intervention suggests that UOKiK is willing to monitor market practices in the automotive sector. That is because this intervention is the first publicly known attempt by UOKiK to enforce the rules of Regulation 461/2010 and the Supplementary Guidelines, which were further clarified in the Commission document “Frequently asked questions on the application of EU antitrust rules in the motor vehicle sector”.
UOKiK’s press release regarding its intervention is available here
Please contact Marcin Alberski or Stanisław Szymanek for more information.
