OREANDA-NEWS. March 05, 2012. The statement was made by the Head of FAS Russia Igor Artemyev at a meeting with representatives of the Association of European Business, car distributors and car dealers, reported the press-centre of FAS Russia.

Current situation on the market of wholesale sales of new vehicles of particular brands, services for technical maintenance of new cars under warranty and sales of spare parts enables car manufacturers (car distributors) to exercise decisive influence upon the conditions of goods circulation within the dealer network. As emphasized by Igor Artemyev, it creates conditions for abusing market power by them.

As a result, stated the Head of FAS Russia, the established anticompetitive sales practices prevent normal development of these markets. In particular: forcing dealers to combine the functions of selling cars and after-sales services; creating discriminatory conditions for access of certain dealers with the same dealer network when supplying new cars and spare parts to them; unreasonably restricting authorized dealers and service centres in selecting suppliers of equipment and materials.

According to FAS Russia, such controversial practices include prohibiting authorized service-centres to repair vehicles of competitive brands; supplying special equipment for diagnostics and technical maintenance only to the authorized service centres; unreasonable refusals to supply original spare parts to independent service-centres and fixing for dealers retail reselling prices for original spare parts and accessories.

“Imposing minimum reselling prices is unacceptable”, emphasized Igor Artemyev.

As a result, such anticompetitive practices of cooperation between car distributors and dealers infringe the interests of companies operating on the markets of car sales and after-sales services. Competition is restricted through high market entry barriers. The costs of dealer and after-sales services are overrated, and in some instances the quality of services is deteriorated.

Resolving the above problems is directly related to development competition on these markets. The Head of FAS stated that car distributors must form transparent and non-discriminatory rules for selecting dealers and service centres and distribution of cars and spare parts between the authorized service centres. Mandatory combination of sales and after-sales services must be eliminated.

It is also important to ensure non-discriminating access to service documentation, spare parts and software to the authorized and independent service centres. Finally, it is necessary to eliminate unreasonable restrictions for the authorized dealers and service centres to select suppliers of the required equipment and materials.

Summing up his presentation, Igor Artemyev informed the meeting participants that the FAS Expert Council for developing competition in car sales and after-sales services had formed three working groups that had already started their work.

“Today we open a discussion on the raised issues. The main rule of our work is not to harm development of a new system of relations on the marker of car sales and after-sales services”, emphasized Igor Artemyev.