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

Hardcore restrictions: MVA

This section has no associated Explanatory Memorandum

5.—(1) The condition in this article is that the MVA agreement must not contain a hardcore restriction within the meaning of paragraph 2.

(2) A hardcore restriction is one or more provisions which, directly or indirectly, in isolation or in combination with other factors under the control of the parties, have as their object—

(a)the restriction of sales of aftermarket goods by members of a selective distribution system to independent repairers who use or want to use those aftermarket goods for the purposes of providing repair and maintenance services,

(b)the restriction, agreed between—

(i)a supplier of aftermarket goods or repair and maintenance tools, and

(ii)a supplier of motor vehicles,

of the ability of the supplier in paragraph (i) to sell any of the goods referred to in that paragraph to distributors, repairers or end-users, or

(c)the restriction, agreed between—

(i)a supplier of motor vehicles which uses original parts supplied by another supplier, and

(ii)a supplier of such parts,

of the ability of the supplier in paragraph (ii) to place its trade mark or logo effectively and in an easily visible manner on the original parts or on any spare parts intended to replace those parts.

(3) In this article—

distributor” means an authorised distributor or an independent distributor;

repairer” means an authorised repairer or an independent repairer;

selective distribution system” means a distribution system set up by a supplier of motor vehicles of a particular make, where—

(a)

the supplier undertakes to sell such vehicles, either directly or indirectly, to authorised distributors on the basis of specified criteria, and

(b)

those distributors undertake not to sell such vehicles to independent distributors within the territory reserved by the supplier to operate that system.