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AUTOMOTIVE AFTERMARKET INDUSTRY: INPUT SOUGHT ON COMPETITION GUIDELINE AMENDMENTS
- 18 April 2024
- Trade, Industry & Competition
- SA Legal Academy
The Competition Commission has issued a media statement drawing attention to a call for input on proposed amendments to guidelines intended to promote competition in the local automotive aftermarket industry. The deadline for input has been extended to 14 May 2024.
Gazetted on 28 March 2024 for public comment within 30 days, among other things these somewhat technical draft amendments:
- seek to acknowledge and address issues with implications for original equipment manufacturers and insurers (including ‘low volume and insufficient work’, possibly affecting their capacity to ‘onboard motor body repairers’)
- take account of ‘various factors’ when onboarding motor body repairers on a case-by-case basis, and
- attempt to clarify provisions for ‘the unbundled sale of motor vehicles with value added products’, which apply to ‘new, demo and/or second-hand vehicles at the point of sale’.
Published in January 2021, the guidelines came into force six months later with a view to:
- promoting inclusion in the automotive aftermarket industry, and
- encouraging competition through the greater participation of small businesses and individuals from historically disadvantaged groups.
This followed a two-year stakeholder consultation process in which, unfortunately, no consensus was reached or commitment made to ‘meaningful pro-competitive reforms’ in response to the challenges being experienced. At the time, these included:
- ‘exclusionary agreements and/or arrangements between original equipment manufacturers and approved motor body repairers’
- ‘the exclusion or foreclosure’ of independent service providers in markets for servicing, maintaining and making mechanical repairs to in-warranty motor vehicles
- the ‘unfair allocation of work by insurers’, and
- restrictions on the sale of original spare parts to independent service providers.
Please click the links below for more information:
- media statement
- draft amendments
- 2021 guidelines
Published by SA Legal Academy Policy Watch
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