Motor Sector Regulatory Update – July 2023

UK competition law for the sector

On 1 June 2023 the Motor Vehicle Block Exemption Order (MVBEO) came into force in the UK (referred to in the article "The Agency Model: Further Update" by Mark Gipson). This "MVBO" (which is mainly aftersales-specific) – together with the existing, more general, Vertical Agreements Block Exemption Order or "VABEO" (which covers sales) – now comprise the UK domestic competition regulation for the sector.

As the sector is accepted to be "in transition" the UK Government has limited application of the MVBEO to six years (expiring 31 May 2029) when it may be replaced by new regulation that properly reflects the market and competition issues then relevant to the sector. Helpfully, the final version of the Competition and Markets Authority (CMA) Guidance on the MVBEO was expanded to assist beyond the (aftersales-focused) MVBEO itself to also consider vehicle sales.