{
  "url": "https://openlegislation.uk/competition-act-1998-motor-vehicle-agreements-block-exemption-no-2-order-2023/note",
  "json_url": "https://openlegislation.uk/competition-act-1998-motor-vehicle-agreements-block-exemption-no-2-order-2023/note.json",
  "legislation": "uksi/2023/586",
  "legislation_title": "The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) (No. 2) Order 2023",
  "legislation_url": "https://openlegislation.uk/competition-act-1998-motor-vehicle-agreements-block-exemption-no-2-order-2023",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThis Order is a block exemption order under section 6 of the Competition Act 1998 (“the Act”). It revokes and remakes with amendments the Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 (S.I. 2023/501) (“the original Order”), which contained an error. The original Order is being revoked before the date on which it was due to come into force.\nThis Order gives effect to the recommendation of the Competition and Market Authority (“the CMA”) that certain agreements relating to the motor vehicle aftermarket (“MVA agreements”) constitute a category of agreements which are likely to be exempt from the prohibition against anti-competitive agreements in Chapter 1 of the Act (“the Chapter 1 prohibition”). The Order replaces retained Commission Regulation (EU) No 461/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector (“the retained MVBER”) (EUR 2010/461), which expires at the end of 31st May 2023.\nUnder article 3 of the Order, MVA agreements are specified for the purposes of section 6 of the Act, with the effect that a block exemption from the Chapter 1 prohibition applies to MVA agreements. The block exemption has effect in respect of a particular MVA agreement subject to the conditions and obligation referred to in article 4. These include the conditions which apply to vertical agreements in the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (S.I. 2022/516). Additional conditions are established in articles 5 and 6, which respectively set out a number of hardcore restrictions and an excluded restriction specific to MVA agreements.\nBreach of a condition will result in the block exemption being cancelled in respect of the agreement, except in the case of excluded restrictions which are severable from the agreement (see articles 7 and 8). In addition, the CMA may cancel the block exemption in respect of an agreement if: (i) a party to the agreement fails to comply with the obligation to provide information to it (see article 9) or (ii) the CMA considers that the agreement is not one which is exempt from the Chapter 1 prohibition as a result of section 9 of the Act (see article 10).\nThe Chapter 1 prohibition does not apply for 12 months to agreements in this sector which were exempt from the Chapter 1 prohibition immediately before 1st June 2023 by virtue of the retained MVBER and would not otherwise meet the conditions for exemption under this Order (see article 12).\nThe block exemption applies from 1st June 2023 and will cease to have effect at the end of 31st May 2029 (see article 13).\nA full impact assessment has not been produced for this instrument as no significant impact on the private, public or voluntary sector is foreseen.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2023/586/note",
    "retrieved_at": "2026-10-28T21:44:48.825320+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}