National Automotive 3/90 Branch has leant its support to a recent statement from the Competition and Consumer Protection Commission concerning alleged anti-competitive practices within the motor sector.

The branch says that misinformation is often disseminated to consumers about manufacturer warranties potentially being invalidated if servicing and repairs are not conducted within a brand’s network of authorised repairers. The Competition and Consumer Protection Commission recently issued a letter of warning to businesses who may be involved in this practice of attempting to misinform consumers into only using the main dealer network for their routine maintenance and repairs.

What lies behind this is the fact that the European Union has strong anti-competition legislation and in the context of the motor trade. This is enshrined in the Motor Vehicle Block Exemption Regulation. This was first introduced in 2002 and most recently updated in 2023. The purpose of MVBER is to ensure independent repairers and original equipment quality parts suppliers can operate freely within the European Union and compete against main-dealer networks.

The National Automotive 3/90 Branch says the MVBER protects consumer choice, which during a widely acknowledged cost-of-living crisis, is essential for motorists who may find that main dealer repair pricing structures are prohibitive. In addition, the consumer’s choice to use parts that are (unless proven otherwise) technically compatible and of the same manufacturing quality for the vehicle, (Original Equipment Supplier or “matching quality” are the EU standards) will not invalidate warranties. 

The upshot of this is that motor factors, parts distributors and independent repairers have access to the same consumer market and this ensures competitiveness across the sector. Competition is healthy in any business. It necessitates investment in upskilling, training and tooling, which provides income for those businesses providing those services to the aftermarket. 

Another element of the MVBER legislation is the right to access to technical information. It has become apparent that some manufacturers and dealerships are not disseminating this information if requested, which can include software updates, product recalls, fault codes, and repair and maintenance procedures. This conduct can further damage competition and results in independents turning away work that would otherwise fall within their ability to perform. 

It is the position of the National Automotive Branch that all workers in the motor trade, whether in small family run garages, independent workshops or franchised dealers should be paid fairly, have their skillsets respected, opportunities to upskill and work in safe workshops where their legal rights are upheld. This is especially important as regulation across the sector is an ongoing problem, compared to most other trades that have strong union representation.

The National Automotive Branch wholeheartedly support the MVBER legislation and that hard working independent technicians and business owners should have a fair slice of the repair and parts supply market.

Anyone who has information on anticompetitive practices within the aftermarket can submit information to the CCPC via antitrust@ccpc.ie or visit ccpc.ie for more information.