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TOCar companies will have less influence over dealerships in the future. In a Supreme Court (OGH) ruling in Vienna this week, a first instance ruling by the Vienna Cartel Court against French automaker PSA is upheld. The second largest car company in Europe was convicted of abuse of its dominant position vis-à-vis Austrian dealers. PSA includes Peugeot and Opel, among others. An Austrian dealer sued the general importer Peugeot Austria at the end of 2018 because he, like many other Peugeot dealers in Europe, suffers from PSA’s oppressive requirements.
Now PSA has to stop linking dealer premium payments to customer satisfaction surveys on new vehicle sales. Furthermore, it is necessary to stop reducing dealers’ margin if they do not meet the sales targets deliberately inflated by PSA and if PSA companies themselves compete with dealers with subsidized vehicle prices in the end customer market. In the shop, PSA’s overly complex control system, as well as non-cost hourly rates, which make warranty and warranty work unprofitable for dealers, must be disabled. Ultimately, PSA is also not allowed to pass on the costs of its mystery purchases to retailers. The unilateral restriction of the retailer’s freedom to set prices through the economic compulsion to participate in promotions is also confirmed.
In its resolution, the Supreme Court emphasizes that the removal order applies not only to the case in question, but also to all contractual relationships in which similar dependencies exist, and sees a not inconsiderable need for changes in the remuneration system of PSA. The Supreme Court also clearly points out the parallel applicability of European antitrust law.
For the future, the PSA remuneration system must be adapted and agreed upon again. Industry expert Ferdinand Dudenhöffer assesses the trial as groundbreaking for the European automotive industry. The plaintiff was represented in the cartel court proceedings by Viennese lawyer Peter Thyri, who specializes in Austrian and European cartel and competition law. See effects beyond the auto industry. Thyri argues that it is conceivable that other national competition authorities also apply the legal principle of abuse of conditions in unilateral contractual relationships in the vehicle industry and beyond.
