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EU move heralds dealer freedom

6th July 1995, Page 9
6th July 1995
Page 9
Page 9, 6th July 1995 — EU move heralds dealer freedom
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Which of the following most accurately describes the problem?

• Truck dealers will be free to sell any make of commercial vehicle from 1 October following an EU agreement that exclusive sales deals restrict trade.

Manufacturers fought bitterly to save the selective and exclusive distribution system which has been protected for 20 years, most recently by a bloc exemption in Regulation 123/85.

After the Monopolies and Mergers Commission told the EU that the practice was restrictive, manufacturers tried to convince EU legislators to allow dealers to sell rival makes only from premises 30 miles away from their existing sites.

But the only concession given by the EU is to insist that dealers separate sales areas for rival makes by partitions.