ieExplains: The CCPC is cracking down on the motor industry. What does it mean for me?

The watchdog’s director of antitrust Craig Whelan has written to motor companies in Ireland to warn them of reports of anti-competitive practices in the sale, maintenance and repair of motor vehicles.

The consumer watchdog has issued a warning to Ireland’s motor industry over “anti-competitive practices”.

While it has yet to take formal proceedings against any particular firm, the Competition and Consumer Protection Authority (CCPC) has said it stands ready to do so on foot of customer complaints to its helpline.

Here’s what it’s all about, and how it may affect you.

What’s the CCPC doing?

The watchdog’s director of antitrust, Craig Whelan, has written to motor companies in Ireland to warn them of reports of anti-competitive practices in the sale, maintenance and repair of motor vehicles.

He told them consumers must not be prevented from choosing who services or repairs their vehicle, or what parts they use.

Mr Whelan said they have received reports of motorists who have been prevented or discouraged from getting their vehicles serviced or repaired by independent garages.

What does it mean for me?

As well as causing “obvious inconvenience” to motorists, Mr Whelan said this damaged competition.

Furthermore, he said reports have been received that dealerships have told motorists their vehicle warranty would be rendered void or invalid if routine services or repairs were carried out at an independent garage outside of the network of “authorised dealers”.

Similar reports have emerged for motorists who have used non-original or non-manufacturer-supplied spare parts.

Given the CCPC’s warning that this behaviour is “anti-competition”, it means consumers are likely forking out more if they are being forced to go to certain mechanics or garages, rather than shopping around and choosing one themselves.

Can I lose my warranty if I go to an 'unauthorised' dealer?

The CCPC has said it is concerned conditions may be imposed on motorists through clauses in the vehicle warranty itself, or through other means, such as through distribution agreements for spare parts.

But, it says, motorists should not lose their warranty by going to an independent garage.

Mr Whelan said: “According to competition law, motorists may bring their vehicle to an independent garage of their choosing to get their vehicle serviced or repaired without it affecting their warranty, so long as this work is done by a competent individual.

“Similarly, non-original spare parts can be used in repairs not covered by the vehicle warranty without the warranty being affected, so long as the parts are of ‘matching quality’ to those original spare parts.” 

In other words, you can’t be penalised or lose your warranty in such instances under the law. A recent European Court of Justice ruling affirms this, according to the CCPC, which continues to receive reports from motorists on this issue.

Similarly, independent garages have been urged to report any experiences of unfair restrictions such as being prevented from accessing diagnostic data or tools for the car to the CCPC.

What will happen next?

In his letter, Mr Whelan issued clear guidance to the industry on what they should do next.

“You should review the arrangements and agreements you have in place with the manufacturer of the vehicles you import or distribute, as well as those you have in place with your authorised repairers, to ensure that they do not result in the potential anticompetitive conduct described above,” he said.

He also said motorists should not be “mistakenly led to believe their warranty may be at risk if they were to use independent repairers or non-original spare parts for routine maintenance and repairs not covered by the vehicle warranty”.

While the CCPC has not yet issued formal proceedings against any party, it said it had the power to issue hefty fines for breaches of the law, including fines of up to €50m, or 20% of a business’s turnover.