§ Mr. BercowTo ask the Secretary of State for Trade and Industry what assessment he has made of the operation of the block exemption by car manufacturers, in relation to EC Council Regulation 1475/95. [139903]
§ Dr. HowellsThe European Commission published its evaluation of the operation of the EC cars block exemption (EC Council Regulation 1475/95) on 15 November. The Government are studying this carefully but note its conclusion that the block exemption has not achieved all of its aims. In particular, the report concludes that consumers do not derive a fair share of the benefits of the European Single market from the operation of the selective and exclusive distribution system permitted by the block exemption.
Earlier this year, my right hon. Friend the Secretary of State for Trade and Industry accepted the conclusion of the UK Competition Commission that the system of 536W selective and exclusive distribution, which is used by nearly all car suppliers in the UK, operates against the public interest.