WRITTEN QUESTION E-3605/01 by Salvador Garriga Polledo (PPE-DE) to the Commission. Unfair competition by Rent-a-Car firms.
Date: 2002-01-08
Institutions: European Parliament, Provisional data
Subjects: advertising, competition law, restriction on competition, vehicle rental

20.6.2002

EN

Official Journal of the European Communities

C 147 E/209

Answer given by Ms Reding on behalf of the Commission

(21 February 2002)

including the protection, preservation and
The Commission supports initiatives in the cultural sphere,
development of cultural heritage within the framework and according to the selection criteria of the
‘Culture 2000’ programme, which is the Union’s only financing and planning instrument for cultural
cooperation. The Honourable Member will
the following site: http://
find additional
europa.eu.int/comm.culture/c2000.

information at

The Commission would draw the Honourable Member’s attention to the fact that a call for proposals for
projects to be run in 2003 will be published in the Official Journal in the first half of 2002. Cultural
operators will therefore be free to present their projects so that they can be considered for funding.

(2002/C 147 E/219)

WRITTEN QUESTION E-3605/01

by Salvador Garriga Polledo (PPE-DE) to the Commission

Subject: Unfair competition by Rent-a-Car firms

(8 January 2002)

The fashion for displaying advertising on private vehicles, which is all the rage in American countries, is
now reaching Europe, and one variation is being practised by certain car-hire firms, i.e. Rent A Car.

These firms are displaying advertising on their vehicles, which enables them to offer them for hire
charging only for the fuel consumed, since the advertising carried is sufficient to pay off their investment
in their respective fleets. This has naturally been the subject of complaints from most other firms in the
sector.

Can the Commission say whether it considers this practice whereby car-hire agencies charge customers
only for the fuel consumed, since the advertising displayed on their vehicles is sufficient to pay off their
investment in their fleets of cars, to be unfair competition?

Answer given by Mr Bolkestein on behalf of the Commission

(22 February 2002)

The Honourable Member refers to a recent practice adopted by a car hire company which consists of
displaying advertising on their vehicles. He suggests that through the advertising revenues thus generated
the car rental company is able to offer extremely competitive rates to its customers. The Honourable
Member asks the Commission whether it considers such practices to be a source of unfair competition in
this economic sector.

The Commission does not consider this to be an unfair competitive practice. On the contrary, there is
nothing preventing other companies from entering this display advertising market. The displayed
advertising is regulated according to general rules and regulations that apply to billboard advertising. It
should be noted that this is common practice in the competing taxi and public transport service sectors.

The Commission would also note that there are various types of customers who rent cars. For example,
tourists who may seek bargain rates for such services may be attracted to hiring a car carrying advertising
that costs less to rent than an unmarked vehicle. In contrast, certain business customers may prefer to
drive a car that has no advertising but which costs more to rent. The development of such a niche market
thus offers more choice to customers and should thus increase rather than decrease the competitiveness of
this sector.