Spain: CNMC fines car-wash maker over competition blockage

Spanish market regulator CNMC has set a fine of 638,770 euros to Istobal, a maker of car-wash machinery, over serious violations to the country’s competition laws.

The company is accused of implementing a strategy meant to keep independent Technical Assistant Services (SAT) out of the market by restricting access to necessary parts. The brand had argued for a need to guarantee their reputation for quality, which they said could be harmed by improper maintenance or repairs. The CNMC rejected this justification, as the conduct represents an abuse of the company’s dominant position in the market.

Istobal repeatedly refused to supply replacement parts and technical information to independent SAT providers (those who were not a part of their official network). The company also worked to divide the market for servicing and repairing car-wash machinery into discreet territories, segmenting the market and preventing competition between providers.

The company was found to have struck agreements to divide the market for the maintenance and repair services of car-wash machinery with the aim of excluding independent SAT providers. The CNMC has determined this to be a case of serious abuse of their dominant position.

Full Content: CNMC

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