WRITTEN QUESTION No. 676/99 by Angela BILLINGHAM Restrictive practices in the motor trade
Date: 1999-03-09
Institutions: BILLINGHAM, European Parliament
Subjects: consumer information, consumer protection, distributive trades, harmonisation of prices, motor vehicle industry, price disparity, publishing of prices, restriction on competition, selling price, trade restriction

29.11.1999

EN

Official Journal of the European Communities

C 341/139

(1999/C 341/197)

WRITTEN QUESTION P-0676/99

by Angela Billingham (PSE) to the Commission

(9 March 1999)

Subject: Restrictive practices in the motor trade

In view of the recent case against Volkswagen AG, where it was found to be breaching EU competition rules by
restricting sales to final consumers from other Member States, the large disparity in car prices in the European
Union and the growing trend of cheaper grey imports sold direct to consumers by car sellers operating outside
official dealer networks (mostly in the Far East), would the European Commission be prepared to make an
earlier review of the distribution block exemption which is due to take place in 2001?

Answer given by Mr Van Miert on behalf of the Commission

(31 March 1999)

The block exemption regulation concerning car distribution (Commission Regulation (EC) 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 (1)), entered into force on 1 July 1995 and will expire on 30 September 2002. The
Commission would refer the Honourable Member to Article 11 of the regulation, which provides that the
Commission evaluates on a regular basis the application of the Regulation, with a particular view on price
differentials between the different Member States and on the quality of service to final users.

Since 1993, the Commission has monitored car price differences in the Community in its bi-annual report on
car prices (2). This publication is based on the recommended retail prices, which the manufacturers submit as
of 1 May and 1 November respectively, to the Directorate-General for Competition for their best selling
models across the Community. It is true that the Commission has found high price discrepancies between the
United Kingdom and the other Member States, which have been partly due to the strength of the Pound
Sterling, rather than to changes in recommended list prices.

A growing price transparency, as promoted by the Commission’s regular car price reports and the introduction
of the euro, is increasingly inducing customers to acquire their vehicles in those Member States where prices
and other sales conditions are most favourable. These developments are important market-related factors
contributing to a better harmonisation of prices throughout the Community. The Commission has undertaken
further initiatives (ex-officio proceedings against certain car manufacturers, telephone hotlines) to ensure this
freedom for consumers.

Article 11 of the regulation obliges the Commission to draw up a report on the evaluation of the regulation
before 31 December 2000. This report, whose preparatory works will commence in the course of this year,
will include the experiences of the Commission and the opinions of associations and experts representing the
various interested parties, particularly consumer associations. It is the Commission’s intention to ensure that,
by is procedure, all elements contributing to the application of the regulation, will be taken due account of,
before deciding on any future legal framework for car distribution.

(1) OJ L 145, 29.6.1995.
(2)

See for most recent one IP/99/60 of 1 February 1999.

(1999/C 341/198)

WRITTEN QUESTION P-0695/99

by Christine Crawley (PSE) to the Commission

(9 March 1999)

Subject: Part-time workers’ pension cases

In 1995, the British House of Lords referred to the European Court of Justice a test case, one of 45 000 cases
pending at industrial tribunals, on the legality of part-time workers’ claiming backdated rights against their
former employers on the grounds of discrimination resulting in lost pension entitlements.