Revising Competition Rules in the Motor Vehicle Sector

In May 2007 European Commission launched an inquiry in the motor vehicle sector aiming to assess the evolution of the competitive landscape. Outcome of the inquiry was the Commission Regulation[1] on vertical agreements and concerted practices in the motor vehicle sector. Similar to the efforts of the Commission, in 2011 Turkish Competition Authority launched a sector inquiry into the motor vehicle industry to evaluate the effectiveness of the Block Exemption Regulation. As a result of these efforts, the new Regulation and the explanatory Guidelines have recently been promulgated in the Official Gazette and entered into force.

The Regulation in general simplifies the process of granting block exemption yet it introduces major changes as well. Companies operating in the motor vehicle sector are now required to adopt their practices and comply with these changes. Below are some of the points introduced by these new set of rules.