Grand Auto did not distort competition

The Croatian Competition Agency (CCA) found that the undertaking Grand Auto from Zagreb did not abuse its dominant position in the provision of repair and maintenance services for the car-makes Land Rover and Jaguar in the territory of the Republic of Croatia. The sole fact that Grand Auto has been providing these services as an authorised repairer did not  produce restrictive effects on competition and did not cause harm to the consumers.

The CCA opened the infringement proceeding against the undertaking Grand Auto following a complaint made by the car dealer Karlo that, when Grand Auto became an authorised dealer for Land Rover and Jaguar, stopped to be an authorised repairer for these car-makes in Croatia.

Within the proceeding it was established that Grand Auto did not accept any other car repairer in the authorised repairers’ network but provided the motor vehicle servicing alone.

However, the fact that no other repairer could become an authorised repairer for Land Rover and Jaguar motor vehicles did not have any anticompetitive effects and did not harm the consumers in the sense of competition rules.

Concretely, the analysis of the documentation investigated by the CCA revealed that more than 90 per cent of the turnover realized from the servicing of Land Rover and Jaguar in Croatia related to the repairs carried out after the warranty period has expired. Considering the fact that repairs under warranty represented a negligible segment in the relevant market the access to the authorised repairers’ network could not be considered a serious barrier for the provision of repair services for motor vehicles.

No indices of distortion of competition have been established in the closely connected distribution of spare parts for motor vehicles of the car-make Land Rover and Jaguar either. Namely, the complainant referred in its complaint to unequal treatment of the car dealer Karlo that has been allegedly placed at a competitive disadvantage relative to other authorised repairers. In fact, there have been no other authorised repairers besides Grand Auto and the car dealer Karlo purchased the original spare parts for Land Rover from Grand Auto and from one more undertaking, whereas the alternative spare parts have been purchased directly from the suppliers of spare parts.

On 31 May 2016 Grand Auto ceased to be the authorised Land Rover and Jaguar car dealer for Croatia.