CECRA hails landmark cartel decision against Peugeot Austria

CECRA, the European Council for Motor Trades and Repairs, has applauded a significant ruling by the Austrian Cartel Court, which found Peugeot Austria (PSA) guilty of abusing market power.

It said the decision is a major victory for dealerships and a critical step towards addressing unfair practices by manufacturers across Europe.

The case was initiated by Austrian Peugeot dealer Büchl, who exposed harmful practices by PSA that placed undue economic pressure on its authorised dealers.

The court determined that several of PSA’s practices violated both Austrian and EU competition laws, including inflated sales targets and tying dealer bonuses to customer satisfaction surveys.

The ruling prohibits Peugeot Austria from forcing dealers to participate in new sales promotions and restricting their ability to set prices.

PSA is also barred from linking dealer bonuses to customer satisfaction surveys and inflating sales targets to reduce dealer margins.

Additionally, the court ruled that PSA’s practice of competing with its own dealers by offering subsidised vehicle prices is illegal.

The court also banned Peugeot's inspection systems and hourly rates that left warranty work financially unsustainable for dealers.

PSA is also no longer allowed to charge dealers for mystery shopping and audit costs.

CECRA hailed the decision as a breakthrough in promoting fairness within the industry but noted that significant challenges remain.

The court imposed a €15 million fine on PSA, although CECRA noted that this will not compensate Büchl directly, pointing out that dealers must pursue further legal action for compensation, potentially meaning lengthy legal battles.

Bernard Lycke, director general of CECRA, said: “This ruling underscores the need for a fair and balanced approach to dealership operations.

"It not only protects Austrian dealers but also serves as a catalyst for wider change across Europe. CECRA will continue to advocate for the rights of dealers throughout the region.”