Anyone interested in the distribution of cars should look at the EU December proposal on a "revised Block Exemption Regulation and Guidelines on motor vehicle sales and repair agreements".

Philip Astles, a partner at Kidd Rapinet's Slough office, says "Block exemptions relieve companies from the need to analyse individually whether certain categories of agreements comply with EU rules on restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union – TFEU – previously article 81 and before that article 85 – there has been a lot of treaty renumbering). The current Regulation (1400/2002) is due to expire in May 2010. The EU now thinks no special rules are needed for car distribution compared with other sectors. However it proposes to adopt a new block exemption for repair and maintenance services, where competition appears to be more limited. It also proposes to adopt guidelines dealing with specific issues for both motor vehicle sales and repair. Interested parties are invited to submit comments by 10 February 2010."

For those with any other form of distribution agreement in July 2009 the EU proposed a new general block exemption for vertical agreements and new guidelines with important changes on internet selling. If you would like your distribution agreements to be checked and updated, contact us for information. If you provide any services at all you should check your website and documents for compliance with the new Protection of Services Regulations 2009 which are now in force.