Possible deregulation of aftermarket

Competition Council found that there are monopoly situations of auto manufacturers on the segment represented by spare parts of visible origin and proposes to open to competition the aftermarket , the amendment of national legislation on designs protection, by introducing the "servicing clause", shown in a press release of the Council.

These findings were made following an investigation for aftermarket knowledge.

The purpose of the investigation aimed at identifying of market functioning mechanisms, in order to discover and correct any failures of a competitive nature.

According to the document, the aftermarket was in 2010 of 5.9 billion lei, growing by 2 percent, compared with the previous year, after suffering a decrease in 2009 by 11 percent, compared with the previous year.

Compared to 2008, in 2010 there has been a decrease of 10 per cent.

Auto parts dealers hold about three quarters from sales value of spare parts estimated for years 2008-2010 (the share held by traders, growing from year to year) also shown in the press Council Competition.

A number of 11 traders had in 2010 almost one third of the estimated turnover for the whole market (rising from a quarter in 2008).

Great importers (mostly of independent segment) have obtained the best results, unlike the car agencies whose income representations from spare parts sale have been declining throughout the period.

Servicing clause consists that it will no longer provide protection for a design or model which constitutes a component part of a complex product (for example, car) used in the process of repairing it in order to restore its original appearance.

Consequently, during repairs to their own vehicle, consumers are properly informed about the product origin used for repairing, so that they can choose in full awareness , between competing products offered to repair : original car parts distributed through the network of automobile manufacturer, car parts provided directly by manufacturer or alternatives with an equivalent quality of original car parts.

The amendment of national legislation is allowed to Member States under an article which contains a transitional provision whereby Member States shall maintain their existing laws in this regard and only amend for the purpose of spare parts market deregulation.

The share of counterfeit parts of Romania, far above the European

According to the survey carried out in the report context by Competition Council, regarding counterfeit parts, the perception of those present on aftermarket is that share of counterfeit spare parts used in Romania is 27 per cent , far above the European one.

According to the existing legislation in Romania at this time, placing on the market of pirate products or infringing ones constitute an offence, and in accordance with the law on trademarks and geographical indications, a trademark infringement is considered contravention and shall be punished with imprisonment from 3 months to 3 years or with fine from 50,000 to 150,000 lei.

Council Competition proposes that also counterfeit products sale used in on-road vehicles should be considered an offense.

Such a measure could have the effect of reducing counterfeit spare parts market.

Provisions of the Council Competition draft

Repairs clause - will no longer provide protection for a design or model which constitutes a component part of a complex product used in the repair process in order to restore its original appearance.

During repairs, the consumer will be informed of the product origin used for repairing, so that they can choose between competing products offered to fix it: original car parts distributed through the network of the automobile manufacturer, car parts provided directly by manufacturer or alternatives with an equivalent quality of original car parts
the sale of counterfeit products used in on-road vehicles should be considered an offence



Translated by Anamaria Petrache
MTTLC, Bucharest University