Keywords
Summary

Keywords

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1. Competition ° Agreements, decisions and concerted practices ° Agreements between undertakings ° Adverse effect on competition ° Effect on trade between Member States ° Selective distribution system for motor vehicles ° Dealers prohibited from supplying leasing companies not tied to the manufacturer with vehicles intended to be supplied, without a purchase option, to customers residing outside their own contract territory ° Not permissible

(EEC Treaty, Art. 85(1))

2. Competition ° Agreements, decisions and concerted practices ° Prohibition ° Block exemption ° Regulation No 123/85 ° Dealers prohibited from supplying leasing companies not tied to the manufacturer with vehicles intended to be supplied, without a purchase option, to customers residing outside their own contract territory ° Not exempted

(Commission Regulation No 123/85)

Summary

1. Article 85(1) of the Treaty must be interpreted as meaning that it precludes a motor vehicle manufacturer which sells its vehicles through a selective distribution system from agreeing with its authorized dealers that they are not to deliver vehicles to independent leasing companies where, without granting an option to purchase, those companies make them available to lessees whose residence or seat is outside the contract territory of the dealer in question, or from calling on such dealers to act in that manner.

By establishing absolute territorial protection for the various dealers and reducing each dealer' s freedom of commercial action, in so far as each individual dealer' s choice of customer is confined exclusively to those leasing companies which have concluded contracts with lessees established within its contract territory, such an agreement has as its object and effect the restriction to an appreciable extent of trade within the common market. Secondly, since such an agreement relates to products which are the subject of significant international trade, it may affect trade between Member States.

2. Regulation No 123/85 on the application of Article 85(3) of the Treaty to certain categories of motor vehicle distribution and servicing agreements must be interpreted as meaning that it does not exempt an agreement whereby a motor vehicle manufacturer which sells its vehicles through a selective distribution system agrees with its dealers that they are not to deliver vehicles to independent leasing companies where, without granting an option to purchase, those companies make them available to lessees whose residence or seat is outside the contract territory of the dealer in question, or calls on such dealers to act in that manner.