European regulators have announced plans to shake up the auto services sector, seeking to cut through agreements that tie dealers, repairers and parts providers to manufacturers.
New European Commission rules to open up competition will begin to be applied from Tuesday June 1 for car maintenance and repairs, and three years later for car dealerships.
However, service agreements struck with dealers at the point of sale will still be able to tie car owners to authorised-only repair garages where work is deemed to be 'free' as part of the guarantee, the bloc's top competition enforcer said.
"I strongly believe the new framework will bring tangible benefits for consumers by bringing down the cost of repairs and maintenance that represent an excessive share of the total cost of a car over its lifetime," Joaquin Almunia said in a statement.
The commission estimates that repair bills account for 40 percent of the total cost of owning a car and the changes will notably allow the regulators "to tackle manufacturers' abuse of warranties when they request that cars are serviced only in authorised garages."
However, when pressed to spell out what restrictions will still apply to drivers in need of annual service check-ups or repairs, the scope for consumers to shop around appeared to narrow for car owners under guarantee.
"For all those repair activities that are covered by the guarantee and are given to you for free because you bought your car from this dealer, you have to go to the authorised dealer of this car because the others (service providers) will ask you for money," Almunia said.
Complaints that Almunia wants to tackle include the "refusal to grant independent repairers access to technical information" and obstacles to repairers' wanting access to alternative spare parts.
"Car manufacturers will no longer be able to make warranties conditional on having the oil changed or other car services only in authorised garages," the statement from his office had said.
He stressed that "there should be no doubt about my determination, our determination to enforce competition rules."
For dealer sales, where he said networks tied to big brands can hold market shares of more than 50 percent, he said the three-year deadline was "a good period of transition."
Almunia insisted: "We are representing the consumers, not the dealers."
As part of the changes, no operator will benefit from exemptions if they enjoy a market share of 30 percent or more.
Motorists organisation the Federation Internationale de L'Automobile (FIA) welcomed the direction of the changes.
"In this time of economic crisis when motorists drive older cars requiring more frequent repair, the FIA welcomes recognition of 'the automobile clubs' and all 'independent operators' as having a role to play in ensuring consumers' rights to affordable, safe and clean personal mobility," it said in a statement.