The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023

Interpretation

2.—(1) In this Order—

“aftermarket goods” means—

(a)

spare parts,

(b)

any software required to repair or replace a part or system of a motor vehicle, but which is not a spare part,

(c)

any code or other information necessary for the use of software falling within paragraph (a) or (b), and

(d)

fluids used in the braking system, steering system, engine or elsewhere in a motor vehicle as a coolant, lubricant, cleaner or otherwise, in so far as the fluids are necessary for the effective operation of the motor vehicle, but not fuel;

“agreement” includes a concerted practice but not a decision by an association of undertakings(1);

“authorised distributor”, in relation to motor vehicles of a particular make, means a person who—

(a)

distributes aftermarket goods for such vehicles, and

(b)

operates within the distribution system set up by a supplier of such vehicles;

“authorised repairer”, in relation to motor vehicles of a particular make, means a person who has entered into contractual arrangements with a supplier of such vehicles for the purposes of providing repair and maintenance services for such vehicles;

“the block exemption”, in relation to the category of agreements specified in this Order, means the exemption from the Chapter 1 prohibition(2) arising by virtue of this Order;

“connected undertaking”, in relation to a party to an agreement, means—

(a)

an undertaking in relation to which the party to the agreement, directly or indirectly—

(i)

has the power to exercise more than half the voting rights,

(ii)

has the power to appoint more than half the members of the supervisory board, board of management or bodies legally representing the undertaking, or

(iii)

has the right to manage the undertaking’s affairs,

(b)

an undertaking which directly or indirectly has, in relation to the party to the agreement, any of the rights or powers listed in paragraph (a),

(c)

an undertaking in relation to which an undertaking referred to in paragraph (b) has, directly or indirectly, any of the rights or powers listed in paragraph (a),

(d)

an undertaking in relation to which the party to the agreement, together with one or more undertakings referred to in paragraph (a), (b) or (c), or in relation to which two or more undertakings referred to in paragraph (b) or (c), jointly have any of the rights or powers listed in paragraph (a), and

(e)

an undertaking in relation to which any of the rights or the powers listed in paragraph (a) are jointly held by—

(i)

two or more parties to the agreement or their respective connected undertakings referred to in paragraphs (a) to (d), or

(ii)

one or more of the parties to the agreement or one or more of their respective connected undertakings referred to in paragraphs (a) to (d) and one or more third parties;

“distribution system” means a system for distributing motor vehicles of a particular make;

“goods” includes software and information;

“independent distributor”, in relation to motor vehicles of a particular make, means a person who—

(a)

distributes aftermarket goods for such vehicles, and

(b)

is not an authorised distributor;

“independent repairer”, in relation to motor vehicles of a particular make, means a person who—

(a)

provides repair and maintenance services for such vehicles, and

(b)

is not an authorised repairer;

“motor vehicle” means a self-propelled vehicle intended for use on public roads and having three or more road wheels;

“MVA agreement” has the meaning given in regulation 3(2);

“original part” means a component of a motor vehicle which is, or is intended to be, installed in or on a motor vehicle for the purpose of the initial assembly of a motor vehicle, and includes software;

“part”, in relation to a motor vehicle, means an original part or spare part;

“repair and maintenance services” means repair and maintenance services in respect of motor vehicles, and includes diagnostic services (whether on site or remote), replacing a part or system of a motor vehicle, servicing or inspecting a motor vehicle, software updates, and testing a vehicle for road worthiness;

“repair and maintenance tool” means a tool used for repair and maintenance services;

“spare part” means a component of a motor vehicle which is, or is intended to be, installed in or on a motor vehicle to replace an original part, and includes software;

“supplier” means—

(a)

in relation to goods not falling within paragraph (b) or (c)—

(i)

the manufacturer of the goods, or

(ii)

an importer of the goods into the United Kingdom;

(b)

in relation to software which is a part of a motor vehicle or is, or is intended to be, installed in a repair and maintenance tool, and any information required to use that software—

(i)

the developer of the software,

(ii)

a person who transfers the software by electronic means into the United Kingdom,

(iii)

the manufacturer of the goods into which the software is, or is to be, installed, or

(iv)

an importer into the United Kingdom of the goods into which the software is, or is to be, installed;

(c)

in relation to any other software used for repair and maintenance purposes, and any information required to use that software—

(i)

the developer of the software, or

(ii)

a person who transfers the software by electronic means into the United Kingdom;

“system”, in relation to a motor vehicle, means an assembly of parts combined to perform one or more functions in a motor vehicle;

“the VABEO” means the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022(3).

(2) For the purposes of this Order, the terms “party” and “undertaking” include their respective connected undertakings.

(1)

Under section 59(1) of the Competition Act 1998 (“the Act”), references in Part 1 of the Act to “agreement” are to be read with section 2(5) and (6) of the Act, which provides that, unless the context otherwise requires, a provision of Part 1 of the Act which is expressed to apply to, or in relation to, an agreement, is to be read as applying equally to, or in relation to, a decision by an association of undertakings or a concerted practice (but with any necessary modifications).

(2)

For the meaning of “the Chapter 1 prohibition”, see section 2(8) of the Act.

(3)

S.I. 2022/516.