Competition watchdog issues warning over car sales and repair practises

RTÉ News​

18 hours ago

The Competition and Consumer Protection Commission (CCPC) has issued a warning to the Irish motor industry following reports of anti-competitive practices in the sale, maintenance, and repair of vehicles.
In an industry-wide letter sent late last week to car manufacturers and dealerships it received complaints about, the CCPC reminded them that under competition law consumers must not be prevented from freely choosing who services or repairs their vehicle, or what parts they use.
The warning follows complaints from motorists who claim they have been prevented or discouraged from getting their vehicles serviced or repaired by independent garages.
In some cases, motorists claim to have been told that their warranty will be void if they have their vehicle serviced or repaired outside an authorised dealership network, or if non-original or non-manufacturer-supplied spare parts are used.
Others claim to have been blocked from using independent garages, due to restricted access to essential diagnostic data or tools, which were not made available by the manufacturer or distributor.
Such practices can break competition law, according to the CCPC.
The CCPC said these practices drive up prices and limit choice, harming consumers and independent garages.
The letter was also sent to independent dealerships and garages, as well as the industry representative group: the Society of the Irish Motor Industry (SIMI).
The CCPC says it has informed independent garages of their right to freely repair vehicles and use non-original spare parts that are of a matching quality, as well as to access repair and diagnostic tools.
The consumer agency is seeking information from distributors of motor vehicles in Ireland and has urged them to review and, if necessary, amend any arrangements they have in place.
It gave a deadline of 6 August for information to be submitted.
No formal proceedings have been instigated against any motor dealer over the issue so far, but the CCPC said it will take action if illegal practices are identified.
Under competition law, motorists may bring their vehicle to an independent garage of their choosing to get their vehicle serviced or repaired without it affecting their warranty, so long as this work is done by a competent individual.
Similarly, non-original spare parts can be used in repairs not covered by the vehicle warranty without the warranty being affected, so long as the parts are of "matching quality" to original spare parts.
"Motorists must be free to choose where they service their vehicles and what parts they use without fear of losing their warranty," Director of Antitrust at the CCPC Craig Whelan said.
"Independent garages must not be blocked from accessing essential diagnostic data or tools."
Mr Whelan added that "these restrictive practices hurt consumers, stifle competition, and unfairly advantage authorised dealerships.
"We will continue to monitor this issue closely and will take appropriate enforcement action where we believe competition law has been breached."
The CCPC is urging independent garages to report any experiences of unfair restrictions, including being prevented from accessing essential diagnostic data or tools, by emailing [e-mail] or calling the helpline on 01 402 5555.
The watchdog can impose financial sanctions on businesses of undertakings of up to €10 million, or 10% of its annual worldwide turnover (whatever is greater), for breaches of competition law.
Alternatively, more serious breaches, including cartel behaviour, may be prosecuted as criminal offences and fines of up to €50 million, or 20% of a business's annual worldwide turnover (whatever is greater), can be imposed.