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Vertical Agreements Block Exemption Regulation
ACEM understands that the European Commission is in the process of reviewing and assessing market experience with the Vertical Agreements Block Exemption Regulation prior to its expiry in 2010.
After more than seven years of operational experience, the members of ACEM – manufacturers as well as national associations – wish to confirm their satisfaction with the competition law framework provided by the Vertical Agreements Block Exemption Regulation.
PTW dealers as well as consumers largely benefit from the balanced approaches of the Vertical Agreements Block Exemption Regulation.
The Vertical Agreements Block Exemption Regulation provides the following tangible advantages to the PTW industry and to other interested parties:
The ability of Motorcycle manufacturers to adopt both Selective and Exclusive distribution systems. This has provided a useful element of flexibility in determining the best system to use to achieve the most competitive business position. Use of non-compete clause (within the limits defined under the vertical agreements Block Exemption Regulation) at the manufacturer’s discretion to achieve the most competitive position in certain markets and locations. The absence of a Location clause, which has enabled manufacturers to decide the optimum number and location of official dealers for not only customer convenience, but also to protect the dealers’ significant investment. Link between distribution and after sales activities. It is clear from ACEM members experience that consumers expect their supplier to provide after sales service. Equally important is the fact that dealers need the financial contribution of sales service and parts business to achieve a level of viability and profitability. The application of minimum standards criteria as determined by the manufacturer has been to the benefit of the consumers, in terms of the quality and consistency of dealers’ sales and aftersales service. In this regard ACEM wishes to stress the safety aspect of the requirement for a very high standard of the service capability at dealer level, both for checking the condition of new and used powered two-wheelers for sale, and for ensuring a high technical competence of service. From a customer, dealer and manufacturer’s point of view safety must be paramount.
The current Vertical Agreements Block Exemption Regulation has enabled ACEM members to substantially improve their PTW distribution systems, and to be more competitive in the European market place, providing consumers with wider choices, value and benefits.
ACEM believes this current regulation works well for the benefit of all interested parties. ACEM would propose that this regulation remains unchanged after May 2010 for a further period of at least 10 years, in order to maintain continuity and legal certainty.
Download:
ACEM Position on “Vertical Agreements Block Exemption Regulation”
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