New competition rules have been published following the UK’s exit from the EU, providing major protections for vehicle rental and leasing companies around the automotive supply chain.
The BVRLA has published a new factsheet on the changes, which follow months of painstaking policy engagement from the association.
For the motoring sector, the Vertical Block Exemption Regulation (VBER), together with the Motor Vehicle Block Exemption Regulation (MVBER) and accompanying guidance form an important regime. They exist to ensure that agreements between companies at different levels of the supply chain do not breach competition law. This enables BVRLA members to access the broadest range of repairers and servicing options to help provide an excellent, best-value service to customers.
With the UK leaving the EU, the previous regulations expired at the end of May 2023. The Competition and Markets Authority (CMA) has been working on UK-specific versions of the regulations and guidance.
Following consultation, the CMA has recommended that the Government:
- replaces the EU VBER with a UK-tailored Vertical Agreements Block Exemption Order (VABEO), and
- replaces the MVBER with a Motor Vehicle Block Exemption Order (MVBEO) that is tailored to the needs of businesses operating in the UK and UK consumers.
The BVRLA has worked closely with the CMA on the content of the respective orders and has achieved some vital successes to support members. These include:
- Expressly clarifying the application of “end user” status to motor vehicle leasing and rental companies – the only sector-specific mention. This means there is no legal requirement for the vehicle owner to disclose details of their customer to the manufacturer as a contractual condition or requirement to purchase the vehicle.
- The exclusion of rent and lease agreements from VABEO means that agreements between leasing/rental companies and their customers do not need to be tested in the same way as the agreements between OEMs and leasing/rental firms.
- Crucially for BVRLA members, MVBEO now recognises fleet owners/operators as “independent operators”, which opens up our sector’s claims for equal access to vehicle data.
