Block Exemption likely to be extended for five years

08 July 2022

On the issue of block exemption, the UK chooses a different path than Europe

The European Commission has officially announced its intent to prolong Motor Vehicle Block Exemption Regulations for another five years, until the 31 May 2028.

A public consultation on the draft proposal is open until the 30 of September 2022. Additionally, the Commission has launched a call for evidence, which closes on the same date. Both the public consultation and the call for evidence are “open” exercises, with no pre-defined questions.

As the UK is no longer in the European Union, renewal is not automatic after exiting legislation expires in 2023. Instead, the Competition and Markets Authority will conduct its own assessment.

The CMA’s review will also include assessing the supplementary guidelines on ‘vertical restraints’ in agreements for the sale and repair of vehicles and for spare parts distribution