Automotive Supply Dispute: Competition Tribunal Grants Interim Injunction

Eurospares (Continental Parts) Limited ("Eurospares") recently issued a claim against (1) Porsche Cars Great Britain Limited (“Posche GB”) and (2) Porsche Retail Group Limited (“Porsche Retail”) in the Competition Appeals Tribunal (“CAT”). 

Porsche Retail is a wholly owned subsidiary of Porsche GB and operates as a Porsche Owned Authorised Dealer within Porsche’s selective distribution network. Porsche Retail operates an “aftersales facility” at its West London centre which provides comprehensive aftersales services for new, pre-owned and classic Porsche cars. Eurospares is an independent reseller of genuine spare parts for a range of premium sports cars, including Porsche. 

According to Eurospares, Porsche Retail wrote to confirm that it had been instructed to cease supplying  Eurospares with Porsche parts with immediate effect. Eurospares alleges that there is a “Reseller Ban” in place which only allows Porsche dealers to supply Porsche parts to independent repairers and end customers who service or repair Porsche vehicles themselves.

Eurospares applied to the CAT for an interim injunction in relation to Porsche Retail’s decision.

Injunction ignition - why interim relief?

Eurospares main claim is yet to be heard (track the full case here). In the meantime, the CAT has granted Eurospares’ interim injunction, namely, a temporary order, which prohibits Porsche from ceasing or refusing to supply Eurospares with Porsche parts.  

The CAT was satisfied that it was necessary to grant the temporary order for two main reasons. Firstly, Eurospares would suffer greater harm if the order were not granted than Porsche would if it were.  This is because on Eurospares’ case, being unable to continue reselling Porsche parts would cause significant adverse effects on its business, reputation, market share, and competitive position. Secondly, allowing Eurospares to continue reselling Porsche parts would preserve the status quo between the parties, as their existing arrangements have been in place for several years and have operated smoothly without giving rise to day-to-day disputes.

The waiting game ….

We are currently awaiting a hearing date for Eurospares’ main claim. We will provide a further update once the outcome of that claim is announced. In the meantime, Eurospares’ supply of Porsche parts is continuing.