Ireland’s Competition and Consumer Protection Commission (CCPC) has issued a stark warning to motor dealers who restrict car owners’ repair choices. The regulator threatens penalties of up to €50 million for practices that force drivers to use authorised dealerships for maintenance and repairs.
This landmark intervention addresses a widespread issue affecting thousands of Irish motorists who face inflated repair costs due to anti-competitive practices in the automotive industry. The CCPC’s action could reshape how car owners navigate vehicle maintenance and insurance claims following accidents.
What practices are being targeted?
The CCPC has identified several problematic practices that breach competition law:
Voiding warranties for independent repairs
Many authorised dealers warn customers that their vehicle guarantees will become invalid if they seek routine servicing or repairs at independent garages. This practice effectively locks drivers into more expensive dealership services, even for basic maintenance like oil changes or brake repairs.
Restricting spare parts choices
Dealers frequently tell customers that using non-manufacturer parts—even those of equivalent quality—will void their warranties. This restriction applies to routine maintenance items where alternatives could offer significant cost savings without compromising safety or performance.
Limiting diagnostic access
Independent garages report being denied access to essential diagnostic tools and on-board data systems. This technological gatekeeping prevents skilled independent mechanics from properly servicing modern vehicles, artificially reducing competition.
The financial penalties
Craig Whelan, the CCPC’s director of antitrust, has made clear the serious consequences for non-compliance:
- Criminal prosecution: Up to €50 million fines or 20% of a firm’s turnover, whichever is higher
- Civil penalties: Up to €10 million imposed directly by the CCPC, confirmed by the High Court
These substantial penalties reflect the regulator’s determination to end practices that “hurt consumers, stifle competition, and unfairly advantage authorised dealerships.”
Impact on repair costs and consumer choice
Higher repair bills
When dealers void warranties for independent repairs, motorists must pay out-of-pocket for services that should be covered. This practice artificially inflates repair costs across the automotive sector.
Limited competition
By restricting where consumers can seek repairs, dealers reduce competitive pressure on pricing and service quality. The CCPC notes this leads to “higher prices and lower quality of service for motorists.”
Reduced garage viability
Independent garages struggle to compete when denied access to diagnostic equipment and technical information. This consolidation ultimately reduces consumer choice and drives up costs.
Rights of car owners after accidents
Understanding your repair rights becomes particularly crucial after a car accident. When you’re not at fault, you maintain significant control over the repair process:
Choosing your repair shop
Despite insurance company recommendations, you can select your preferred garage for accident repairs. This right extends to both independent mechanics and authorised dealerships.
Reasonable cost recovery
The at-fault party’s insurance must cover reasonable repair expenses, including:
- Restoration costs to pre-accident condition
- Depreciation compensation for reduced vehicle value
- Car hire during repairs
- Replacement of damaged items like child seats
Quality assurance requirements
Whether repairs are conducted at independent garages or dealerships, the work must meet safety standards. For significant repairs, a Certificate of Roadworthiness may be required.
The CCPC’s enforcement approach
The regulator has outlined a comprehensive strategy to address these issues:
Industry guidance
Motor distributors are being urged to review their practices and ensure compliance with competition law. The CCPC emphasises that independent garages should have equal access to:
- Diagnostic equipment and technical information
- High-quality non-original spare parts
- Vehicle repair opportunities
Monitoring and enforcement
The commission will “continue to monitor this issue closely and will take appropriate enforcement action where we believe competition law has been breached.”
Complaint mechanisms
Independent garages are encouraged to report instances where dealers deny access to essential tools or diagnostic information. Consumer complaints have already prompted this regulatory intervention.
What prompted this action?
The CCPC’s warning follows numerous complaints from both motorists and independent garages:
- Drivers reported being told their warranties would be voided for using independent services
- Garages complained about being denied access to diagnostic tools and technical data
- Consumer groups highlighted the financial burden of restrictive repair practices
These complaints revealed a pattern of anti-competitive behaviour that significantly impacts repair costs and consumer choice across Ireland.
Moving forward: implications for the industry
This regulatory intervention signals a fundamental shift in how the automotive repair industry must operate. Dealers can no longer rely on warranty threats to direct customers to their service departments.
For consumers
Car owners can now make repair decisions based on price, quality, and convenience rather than warranty fears. This freedom should lead to more competitive pricing and improved service standards.
For independent garages
Access to diagnostic equipment and technical information should level the playing field, allowing skilled independent mechanics to compete effectively with authorised dealers.
For the insurance industry
Clearer repair rights may streamline the claims process, as policyholders can choose appropriate repair facilities without warranty concerns complicating decisions.
Ensuring quality repairs after accidents
When dealing with accident damage, quality remains paramount regardless of your chosen repair facility. Professional vehicle damage assessment ensures repairs meet safety standards while protecting your interests.
Expert assessment helps determine whether repairs are economically viable or if replacement is necessary. This evaluation considers factors like structural integrity, safety systems, and long-term reliability.
Taking action for your vehicle repairs
The CCPC’s intervention represents a significant victory for consumer rights and fair competition. However, navigating accident claims and ensuring quality repairs still requires expertise and advocacy.
Professional support becomes particularly valuable when dealing with complex claims, disputed liability, or significant vehicle damage. Expert guidance ensures you receive fair compensation while maintaining the highest repair standards.
Contact HOMS Assist Vehicle Damage team to ensure your car is repaired to the highest standard. Our experienced advisors can guide you through the claims process, coordinate with assessors and repair shops, and protect your interests throughout the repair journey.
With over fifty years of experience supporting clients with material damage and car accident claims, we provide nationwide services through our offices in Dublin, Limerick, and Cork. Call 1800 207 207 for expert assistance with your vehicle damage claim.
