Automotive: “Innovation and fair competition,” EU Commission opens antitrust consultations

Brussels – The EU intends to tackle competition in the motor vehicle sector by reviewing antitrust rules. To accomplish this, this time the European Commission has chosen to turn to the members of the industry itself by launching a new public consultation addressed to European automotive representatives and national competition authorities. As of today (Feb. 28), parties are invited to express their views regarding the operation of rules on vertical agreements, i.e., agreements between companies operating at different levels of the production and distribution chain and concerning the terms of trade of certain goods or services.

The initiative is part of the evaluation that the European executive is already conducting on the Motor Vehicle Block Exemption Regulation (MVBER) and Supplementary Guidelines (SGL), launched on January 18, 2024. These rules, which will expire on May 31, 2028, assist automotive companies in determining whether their vertical agreements are compatible with Article 101 of the Treaty on the Functioning of the EU, which prohibits agreements between companies that restrict competition. In parallel with these rules, the Commission will soon (March 5) present an Action Plan aimed at addressing hot topics in the European automotive industry, such as of capital and labor supply, technological innovation and the development of a new generation of vehicles, and the construction of a predictable regulatory framework.

As Teresa Ribera, the Commission’s Executive Vice President for Clean, Just and Competitive Transition, explains, the intent is to “ensure that our antitrust framework keeps pace with rapid changes in the motor vehicle market. It is essential to build on the experiences of various stakeholders to have rules that continue to promote innovation and safeguard fair competition.”

Stakeholder comments will be collected until March 23 and then published on the Commission’s “have your say” portal. Upon completion of the assessment, which will take into account current market trends and expected automotive developments between now and 2028, possible policy options for the future of the MVER will be analyzed, at a stage planned for 2026.