🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

EU antitrust boss studying car repairs market but no investigation

Published 04/03/2019, 18:08
Updated 04/03/2019, 18:10
© Reuters. FILE PHOTO: EU Competition Commissioner Vestager talks to the media at the European Council headquarters in Brussels
RENA
-
ACN
-

By Foo Yun Chee

BRUSSELS (Reuters) - European Union regulators are studying how the car repairs market works following demands from customers for more competition, but have not opened a case, the bloc's antitrust chief said on Monday.

The study will look at carmakers including Renault (PA:RENA), Jaguar Land Rover, Peugeot and software vendor Accenture (NYSE:ACN), European Competition Commissioner Margrethe Vestager told reporters.

She said interest was triggered by car owners who want more competition and the opportunity to be able to use other repairers or garages than those certified for their cars.

"It is not an investigation, it is not a case but it is sort of part of our market supervision also in this area. We want to get a sense of this market again because this is very much about data. You can access the data to service the car," she said.

Renault, Jaguar Land Rover, Peugeot and other carmakers have increased revenues by more than $1 billion in the past decade by using sophisticated pricing software, sales presentations prepared by Accenture and other documents filed in a court case have shown.

The software works by identifying which spare parts in a manufacturer's range customers would be content to pay more for, how much to raise prices by and which prices should not be hiked, Accenture told prospective clients.

Accenture has denied its software was unfair to motorists and said its focus was on increasing efficiency for its clients.

Renault, Jaguar Land Rover and Peugeot said their pricing strategies for spare parts were legal, did not take advantage of car owners and were focused on efficiency and ensuring availability for motorists.

© Reuters. FILE PHOTO: EU Competition Commissioner Vestager talks to the media at the European Council headquarters in Brussels

France's competition regulator said last year it had examined the software and did not see a reason to open a full antitrust investigation, without explaining its thinking.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.