WRITTEN QUESTION E-2214/01

by Brian Simpson (PSE) to the Commission

(24 July 2001)

Subject: Car manufacturers withholding technical information from independent vehicle-repair specialists

Is the Commission aware that major car manufacturers are withholding equipment and technical information from independent vehicle-repair specialists in the UK so as to ensure that cars may be repaired only by franchise garages?

Would the Commission investigate, as a matter of urgency, this practice, which appears to constitute a restriction of trade and is forcing small, independent operators out of business?

Answer given by Mr Monti on behalf of the Commission

(10 October 2001)

The Honourable Member is referred to the Commission's reply to a letter from the Honourable Member dated 9 July 2001, which covered essentially the same subject matter as this present reply.

The Commission is well aware of the difficulties faced by independent garages that wish to repair modern vehicles. Such vehicles increasingly contain complex electronic systems that can only be accessed using brand- or model-specific technical information and diagnostic equipment.

As the Honourable Member may know, exclusive and selective car distribution networks presently fall within the ambit of Block Exemption Regulation (EC) No 1475/95(1). At the time that this Regulation was adopted, cars were less technologically complex, and access to specialised diagnostic tools and information was not such an important issue as it is today.

Article 6(1)(12) of Regulation (EC) No 1475/95 provides that car manufacturers must make accessible to independent repairers the technical information necessary for the repair and maintenance of motor vehicles. Even where the information is covered by the manufacturer's intellectual property rights or constitutes identified, substantial and secret know-how, it may not be withheld in a discriminatory or abusive manner.

The manufacturer may ask independent garages for a reasonable payment for the supply of technical information. This fee may not, however, be discriminatory or set at a prohibitively high level.

Regulation (EC) No 1475/95 is of course not the only legislation that has a bearing on this issue. In certain cases where the equipment concerned is for monitoring on-board systems intended to reduce pollution, Directive 98/69/EC of the Parliament and of the Council of 13 October 1998 relating to measures to be taken against air pollution by emissions from motor vehicles and amending Council Directive 70/220/EEC(2) may also be relevant. This Directive provides that no later than three months after the manufacturer has provided any authorised dealer or repair shop within the Community with repair information, the manufacturer must make that information (including all subsequent amendments and supplements) available to all repair market operators for a reasonable non-discriminatory fee.

Regulation (EC) No 1475/95 expires in September 2002 and the Commission is currently in the process of reviewing the operation of the competition rules in this area. As part of the review, last year the Commission carried out an evaluation of the way in which Block Exemption Regulation (EC) No 1475/95 has functioned since it was adopted in 1995.

In its report, which is available on the Internet(3), the Commission concluded that the Block Exemption had not fulfilled certain of its aims, inter alia as regards independent repairers' access to technical information.

The Commission is now carefully examining all relevant questions with a view to deciding on a framework for post-2002 car distribution. Access to technical information and to diagnostic equipment is a particularly important issue in this regard. In particular, it would seem that an inability to get access to such equipment may effectively exclude independent repairers from an increasing segment of the repair market, to the detriment of competition. There are, however, other interests that must be taken into account, including those of the car manufacturers and the manufacturers of the diagnostic equipment concerned.

The Commission has recently commissioned the independent consultants Arthur Andersen to carry out a study to measure the impact of possible legislative scenarios on all parties concerned, and they have been specifically asked to look at the question of access to diagnostic equipment and technical information.

The Honourable Member may be assured that the Commission will consider all relevant factors before deciding how to deal with this issue in the context of the post-2002 regime for car distribution.

(1) Commission Regulation (EC) No 1475/95 of 28 June 1995 on the application of Article 85(3) of the EC Treaty to certain categories of motor vehicle distribution and servicing agreements, OJ L 145, 29.6.1995.

(2) OJ L 350, 28.12.1998.

(3) At http://europa.eu.int/comm/competition/car_sector/distribution/eval_reg_1475_95/report/.