Competition law warning issued to Irish motor industry

The Irish motor industry has been issued with a warning following reports of anticompetitive practices in the sale, maintenance and repair of motor vehicles.
The Competition and Consumer Protection Commission (CCPC) today published an eight-page letter which has been sent to a number of businesses in the sector.
The letter reminds business 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 reports from motorists who 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 use non-original or non-manufacturer supplied spare parts.
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.
The CCPC has warned that these practices may breach competition law and can drive up prices, limit choice, and harm both consumers and independent garages.
The CCPC 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.
While formal proceedings “have not been instigated against any particular firm at the current time”, the CCPC has emphasised that it will take action if illegal practices are identified.
The CCPC has also informed independent garages of their right to freely repair vehicles, to use non-original spare parts which are of a matching quality, and to access repair and diagnostic tools.
Craig Whelan, director of antitrust at the CCPC, said: “Motorists must be free to choose where they service their vehicles and what parts they use without fear of losing their warranty. Independent garages must not be blocked from accessing essential diagnostic data or tools.
“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.