The automotive distribution sector has long been subject to a specific legal framework under competition law. The complexity of its networks and the interdependence between new vehicle sales and the after-sales market have justified the implementation of specific rules, distinct from the general regime. For professionals — whether manufacturers, dealers, repairers or parts suppliers — understanding these rules is essential to secure their activities. Sound legal advice on competition within automotive distribution networks is therefore indispensable. This article offers a detailed analysis of the current framework, focusing on the after-sales market, which retains an exceptional regime. It forms part of our broader analysis on the particular case of the automotive sector within vertical restraints, providing technical insight into its subtleties.

The evolution of the regulatory framework for the automotive sector

European competition law applicable to the automotive industry has undergone a profound transformation. From a highly derogatory system, it has moved towards a dual approach, now clearly distinguishing the sale of new vehicles from the market for services and spare parts. This shift has forced industry players to revise their contractual and commercial practices.

The former regime (Regulation of 31 July 2002)

Until 2010, the automotive sector was governed by Regulation (EC) No 1400/2002. This text established a single block exemption regime covering both new vehicle distribution and the after-sales market. Its approach was regarded as particularly prescriptive: it imposed strict conditions on vertical agreements (agreements between undertakings operating at different levels of the production or distribution chain) for them to benefit from an exemption from the prohibition on anti-competitive agreements laid down by Article 101 of the Treaty on the Functioning of the European Union (TFEU). The aim was to stimulate intra-brand competition and to guarantee wider access for independent repairers to the market. However, this framework was considered too rigid and at times disconnected from the economic realities of the sector, which led to its non-renewal and a reshaping of the system.

Alignment with the general regime for new vehicle sales

Upon the expiry of the 2002 regulation, the European Commission decided to change its approach. Since 1 June 2010, new vehicle distribution agreements no longer benefit from a sector-specific exemption. They are now subject to the general regime for vertical restraints. In practical terms, this means that their validity under competition law is assessed through the lens of the general block exemption regulation. The reference text today is Regulation (EU) 2022/720 governing general vertical restraints, which lays down more flexible conditions, particularly regarding market share thresholds, to benefit from the exemption. This change has given manufacturers greater contractual flexibility to organise their sales networks, but has also required dealership contracts to be adapted to comply with this new framework.

The current specific regime for automotive after-sales

While new vehicle sales have been brought under the general rules, the after-sales market — including the distribution of spare parts and the supply of repair and maintenance services — retains derogatory status. The Commission took the view that this market presented persistent competitive risks, warranting the retention of a stricter framework to protect consumers and independent operators.

Regulation (EU) No 461/2010: temporal and material scope

The cornerstone of after-sales regulation is Regulation (EU) No 461/2010. Unlike its predecessor, its scope is strictly limited. It concerns only vertical agreements relating to the purchase, sale or resale of spare parts for motor vehicles, as well as those relating to the supply of repair and maintenance services. The objective is clear: to guarantee effective competition on the secondary market, which most directly affects the consumer throughout the lifetime of their vehicle. Having entered into force on 1 June 2010, this regulation was initially due to expire on 31 May 2023.

The supplementary guidelines and the explanatory brochure (2012)

Aware of the complexity of the rules and of the need to support market participants, the Commission published supplementary guidelines specific to the automotive sector in 2012. These complement the general guidelines on vertical restraints. They provide interpretations and concrete examples concerning the application of Regulation 461/2010, notably on sensitive issues such as access to technical information, the definition of original and matching-quality spare parts, and the use of diagnostic tools. An explanatory brochure was also circulated to make these principles more accessible to businesses and consumers, demonstrating a pedagogical intent on the part of the European institutions.

The renewal of the block exemption regulation (Reg. (EU) 2023/822, Guidelines 2023/1331)

As the 2023 deadline approached, the Commission carried out a thorough evaluation of the regime. The finding was that the competitive conditions in the after-sales market had not fundamentally changed and that the risks of market foreclosure by manufacturers persisted. Consequently, Regulation (EU) 2023/822 was adopted, extending the validity of Regulation 461/2010 for a further five years, that is until 31 May 2028. New guidelines (2023/C 133 I/01) were also published to take account of market developments, notably increasing digitalisation, access to data from connected vehicles, and the rise of new types of powertrain. The renewal of this regime reflects the continued importance attached to preserving a competitive ecosystem for automotive maintenance and repair.

Hardcore restrictions specific to after-sales

Regulation 461/2010 identifies a list of « hardcore restrictions ». The presence of a single such clause in an agreement automatically deprives it of the benefit of the block exemption. These prohibitions are designed to dismantle the most direct barriers to competition in the after-sales market.

Restriction on the sale of spare parts to independent repairers

The regulation prohibits any clause that would restrict the sale of spare parts by members of an authorised network to independent repairers. A manufacturer cannot, therefore, prohibit its dealers or authorised repairers from supplying original parts to garages that are not part of its official network. This measure is fundamental because it enables independent repairers to offer their customers repairs using original parts, thereby placing them in a position to compete directly with authorised networks. Attempting to create a captive market for parts may, in certain circumstances, amount to practices constituting an abuse of a dominant position.

Restriction on the ability of parts manufacturers to sell their products

Any attempt by a vehicle manufacturer to prevent a component supplier that provides it with parts (for example, braking systems or filters) from selling those same parts on the independent market is also regarded as a hardcore restriction. The original equipment supplier must remain free to market its products to wholesalers, retailers or directly to independent repairers. This provision is intended to ensure a plurality of supply sources for quality parts and to prevent the vehicle manufacturer from indirectly controlling the distribution of parts it has not itself manufactured.

Limitation on the affixing of the manufacturer’s mark on parts

A vehicle manufacturer cannot prohibit a component supplier from affixing its own trademark or logo to the parts it manufactures and supplies as original equipment. This rule, seemingly technical, is in fact of primary importance. It allows component suppliers to build a reputation for quality under their own name on the spare parts market. A consumer or a repairer can thus choose a « Bosch » or « Valeo » branded part knowing that it comes from the same manufacturer supplying vehicle manufacturers, fostering competition based not only on price but also on the reputation of the supplier’s brand.

The protection of design rights for visible parts

The regulation addresses a particularly contentious issue at the intersection of competition law and intellectual property: that of « visible » parts, such as bodywork elements (wings, bonnets), bumpers or headlights. The block exemption does not apply to agreements by which a vehicle manufacturer would seek to use its intellectual property rights, notably its design rights, to prevent an independent manufacturer from producing and marketing spare parts that reproduce the appearance of the original. This provision reflects a delicate balance. It aims to prevent the monopoly conferred by an intellectual property right from being used to create an absolute monopoly on the repair market, particularly for so-called « captive » parts. The management of design protection for products is therefore a strategic issue for component suppliers.

Withdrawal of the exemption and disapplication of the regulation

Even where an agreement contains no hardcore restrictions, the benefit of the exemption is not absolute. The regulatory framework provides for ex post control mechanisms to deal with situations where, despite formal compliance, anti-competitive effects arise.

The conditions for withdrawal by the Commission or national authorities

The European Commission or a national competition authority (such as the Autorité de la concurrence — the French Competition Authority) may decide to withdraw the benefit of the exemption from a particular agreement. This procedure may be initiated where, after analysis, the agreement in question is found to produce effects incompatible with the fundamental principles of competition law, even if it meets the conditions of Regulation 461/2010. The withdrawal is an individual measure, targeting a specific agreement, and does not call the regulation itself into question. It may be used, for example, to sanction a network whose practices, while not explicitly prohibited, in fact result in excluding competitors from the market.

Disapplication of the regulation in the event of significant cumulative effects

A second, more radical mechanism is that of disapplication. It does not target an isolated agreement but a market situation. Where, on a relevant market, parallel networks of similar agreements (for example, non-compete clauses or exclusive purchasing obligations) cover more than 50% of that market, the Commission may adopt a regulation declaring that block exemption Regulation 461/2010 no longer applies to that specific market. This powerful measure is designed to address a « foreclosure effect » on the market, where the multitude of individually acceptable agreements collectively creates a near-insurmountable barrier for new entrants or existing competitors.

The regulation of automotive after-sales remains a dense legal field, marked by a subtle balance between contractual freedom and the need to preserve open competition. For businesses in the sector, constant vigilance is required to ensure the compliance of their contracts and practices. If you are facing issues relating to the organisation of your network or the application of these rules, contact our firm for a tailored analysis of your situation.

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