The New Rules of the Road: Federal Council Approves Changes in Automotive Market Regulations

In a recent development that will significantly impact the automotive market, the Federal Council has approved the Motor Vehicle Ordinance, which is set to come into effect on January 1, 2024. This ordinance, derived from the Pfister motion, will replace the existing Motor Vehicle Notice issued by the Competition Commission (“ComCo”).

The primary objective of the new Motor Vehicle Ordinance remains consistent with its predecessor, aiming to eliminate anti-competitive practices and prevent the isolation of the Swiss automotive market. It encompasses various aspects of the automotive trade, including the distribution of new vehicles, spare parts, and the provision of repair and maintenance services. Significantly, the ordinance delineates specific behaviors which are deemed to significantly restrict competition, many of which have been carried over from the previous notice with minor adjustments to accommodate changes in the automotive industry.

A key distinction between the Motor Vehicle Notice and the new Motor Vehicle Ordinance is that the latter will now hold legal binding authority for both the ComCo and Swiss courts. This denotes a shift in jurisdiction and ensures the enforcement of these regulations with greater rigor and consistency.

Additionally, ComCo has published explanatory notes to accompany the new ordinance, furnishing insights into its interpretation and application. These notes encompass a range of topics including parallel imports, access to spare parts and technical information for independent garages, multibrand distribution by garages, and cancellation procedures. It is important to note that while these notes are intended to serve as a guide, they are not legally binding for the Swiss courts.

Businesses operating within the automotive sector are advised to thoroughly review their dealer contracts in light of these impending changes. It is essential to ensure compliance with the new regulations, which are more stringent than those stipulated by EU antitrust law.

In conclusion, the approval of the Motor Vehicle Ordinance marks a significant shift in the regulatory landscape of the automotive market in Switzerland. Its enforcement will be crucial in promoting fair competition and preventing anti-competitive behavior in the industry. The explanatory notes provided by ComCo offer valuable insights into the interpretation of the ordinance and are essential reading for businesses seeking to navigate these changes effectively. As the automotive market continues to evolve, it is imperative for businesses to stay informed and adapt to the shifting regulatory environment.