Porsche Ordered to Continue Supplying Parts to UK Reseller
Discussion
Competition Appeal Tribunal has granted interim relief to spare-parts retailer Eurospares after the German carmaker halted supplies:
https://www.catribunal.org.uk/cases/17325725-euros...
Porsche unlawfully shut out Eurospares, parts supplier tells UK judge.
https://iclg.com/news/22889-porsche-ordered-to-con...
If I'm reading this correctly, authorised dealers cannot sell parts to resellers not involved in repair or servicing?
https://www.catribunal.org.uk/cases/17325725-euros...
Porsche unlawfully shut out Eurospares, parts supplier tells UK judge.
https://iclg.com/news/22889-porsche-ordered-to-con...
If I'm reading this correctly, authorised dealers cannot sell parts to resellers not involved in repair or servicing?
So-called Selective Distribution arrangements always involve restrictions on who people are allowed to sell to. This is permitted because the legal system understands that luxury brands (perfumes, champagne, handbags) would, lose their brand value if they were available from every street trader instead of only from "authorised outlets". Car manufacturers are able to have Selective Distribution arrangements in order to protect the financial viability of official parts and service support for customers who've spent a lot of money on a new car and don't want to find there are no parts available or there's nowhere to get the car fixed.
The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
Panamax said:
So-called Selective Distribution arrangements always involve restrictions on who people are allowed to sell to. This is permitted because the legal system understands that luxury brands (perfumes, champagne, handbags) would, lose their brand value if they were available from every street trader instead of only from "authorised outlets". Car manufacturers are able to have Selective Distribution arrangements in order to protect the financial viability of official parts and service support for customers who've spent a lot of money on a new car and don't want to find there are no parts available or there's nowhere to get the car fixed.
The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
Would the reseller potentially have been selling them cheaper than retail? The basic position is that parts are sold by Porsche only to (a) car owners, or (b) garages who are going to fix somebody's car.
Eurospares doesn't own cars and doesn't fix cars - it's just a re-seller of car parts. Hence the argument, because Porsche thinks that's damaging its business.
Where Porsche GB tripped up was supplying parts to Eurospares for a long time and then trying to change their mind. The so-called Interim Injunction is a temporary court order which prevents Porsche from stopping supply pending a full hearing of Porsche's case. Whether Porsche will want to continue to pursue the case is another matter.
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