European law prohibits agreements between companies that restrict competition. The BER is an EU competition law instrument that creates targeted exemptions from EU law for certain sectors, such as the automotive sector, provided that this results in efficiency gains and benefits consumers. At the same time, it also defines practices that distort competition and expressly prohibits them. The Motor Vehicle Block Exemption Regulation has regulated the relationships between vehicle manufacturers, dealers and workshops since 2010. To ensure that the vehicle spare parts and repair services sector can benefit from free and fair competition, the regulation prohibits vehicle manufacturers from engaging in practices that would distort the market in their favor. A review of a possible extension is now pending before the regulation expires in 2028.
The Automotive Block Exemption Regulation ensures that alternative spare parts, such as those from MAHLE, can survive on the market. This leads to competitive prices for consumers and at the same time secures the market position of independent aftermarket suppliers. At the same time, the BER guarantees access to technical data and system interfaces so that modern spare parts can also be developed and seamlessly integrated into the vehicle systems. Access to the necessary software to install and teach modern spare parts is particularly important here.
In addition, the regulation establishes a clear legal framework for cooperation between suppliers such as MAHLE and vehicle manufacturers, which promotes balanced and fair business relationships. The Motor Vehicle Block Exemption Regulation is therefore an indispensable tool for maintaining a fair and competitive automotive aftermarket, which benefits both companies like MAHLE and consumers in the long term.
The regulation secures access to the repair market for independent workshops by prohibiting vehicle manufacturers from entering into exclusive agreements with authorized workshops. It also ensures that independent workshops can gain access to the manufacturer's service network under fair conditions, provided they meet the quality requirements. Furthermore, warranty claims may not be made dependent on repairs being carried out exclusively in authorized workshops (free choice of workshop). In 2023, Toyota was warned on the basis of the Motor Vehicle Block Exemption Regulation due to precisely such warranty conditions.
The regulation defines what is meant by an original part and what criteria spare parts must meet in order to be of equivalent quality. A key component is the freedom of workshops to source spare parts either directly from the vehicle manufacturer or from alternative suppliers. Of particular importance is the ban on linking vehicle warranties to the exclusive use of original parts and the obligation to provide consumers with comprehensive information on this. Suppliers are granted the right to affix their brand logos to the spare parts they manufacture. Exceptions only apply to design-protected components.
The Motor Vehicle Block Exemption Regulation obliges vehicle manufacturers to make all technical information, diagnostic tools, training materials and special tools available to independent market participants at reasonable conditions. This increasingly includes access to digital vehicle data and diagnostic functions, which have become essential for certain repairs. Vehicle manufacturers have been warned on the basis of the motor vehicle GDPR rules because they had only made the full scope of their diagnostic software available to authorized workshops or had charged independent workshops disproportionately high costs for their online service systems.
This sets out the permissible conditions for the sale of new vehicles - from the structuring of dealer networks to the permitted obligations for dealers. Particularly important are the prescribed minimum terms for dealer contracts, which guarantee dealers reliable planning security. The discussion about the "agency model" for vehicle sales is currently relevant. In this model, the manufacturers sell the vehicles and the dealers only act as intermediaries with commission.
In Brussels, the signs are pointing to a reduction in bureaucracy. Numerous regulations are being reviewed to ensure they are necessary and up-to-date - including the Motor Vehicle Regulation. There are voices calling for more freedom of competition and possibly underestimating the protective function of the BER.
The motor vehicle sector is the only industry that is regulated by such a special regulation. This inevitably raises the question of whether such exceptional treatment is still justified in this day and age. The Commission could argue that general competition law offers sufficient protection for a fair market. To make matters worse, the ongoing digitalization and electrification of vehicles have fundamentally changed the market environment, which could necessitate a reassessment of existing regulation.
Without the protective effect of the BER, unilateral market power would have far-reaching consequences: higher costs for consumers, a drastic reduction in freedom of choice for workshops and spare parts and a massive loss of jobs in the independent aftermarket sector. Without access to technical information, many repair and maintenance jobs can no longer be carried out by independent workshops. In addition, vehicle manufacturers could design warranty conditions in such a way that they systematically put independent workshops at a disadvantage. Small and medium-sized companies, which form the backbone of the independent aftermarket, would be particularly at risk.
In addition, there is a risk of technological progress in the aftermarket slowing down, as innovations would be made considerably more difficult without guaranteed access to technical information. Especially in the context of advancing digitalization and access to vehicle data, this would mean a significant step backwards for the entire industry.