Vj-30/1997/19

OPEL SOUTHEST EUROPE / 56 OPEL DEALERS

OPEL SOUTHEST EUROPE (hereinafter: Opel) is the exclusive importer and wholesaler of Opel cars in Hungary. It concluded distribution and servicing agreements with 56 Hungarian Opel dealers in December 1996, stipulating that dealers were not allowed to sell other type of cars without the preliminary permission of Opel, for guarantee servicing work had to use only Opel spare parts, Opel spare parts could be purchased exclusively from Opel or the source appointed by Opel, service work on other type of cars were allowed with Opel`s prior approval, and dealers were not allowed to make advertising campaign outside their own territories, fixed in the agreement. Dealers were not allowed to sell new Opel car to retailers. Furthermore Opel stipulated other conditions in the contracts on the management of the dealers, such as: quality requirements of selling, value of the net current assets, specific accounting and registering principles, recommended retail price and called for the establishment of a Franchise Council to improve the co-operation. The agreements were made for an indefinite time period.

Opel and the 56 car dealers applied to the Office of Economic Competition for a qualification that their agreement did not restrict competition; otherwise they requested exemption from the prohibition according to the relevant provisions of the Competition Act.

In its decision the Competition Council stated that the agreements were not anti-competitive at the time of concluding under the former Competition Act which was effective at that time, but the Competition Council also reviewed the compatibility of the agreements according to the regulations of the new Competition Act which came into force on 1 January, 1997. The new act provides that the prohibition of the new act may not be applied to agreements made prior to its entry into force, if such agreements were not prohibited by the prohibitions previously in force.

After consideration of all the facts, the Competition Council provided individual exemption from the prohibition of restricting agreements from 1 January 1998. It took into consideration the strong competition on the Hungarian car market, the fact that as a result of the agreements consumers would be able to purchase new Opel cars or car parts under the same terms or would have their cars serviced under identical circumstances all over the country. The agreements strengthen inter-brand competition. The main factor considered in the judgement of the Competition Council was the favourable effect of the agreements on the consumers.

November 24, 1997. Budapest

dr. Bodócsi András sk. előadó
Vérné dr. Labát Éva
Dr. Kállai Mária
Kiss Lászlóné