fQuintegia, with the support of Findomestic Banca and Nobis Assicurazioni, presented an in-depth study on Law No. 108/2022, titled “La disciplina della distribuzione automobilistica,” at the latest Automotive Dealer Day in Verona. (Available only in Italian)

This study, drafted… by Lawyer Marco A. Grilli of the Grilli Law and Tax Firm, offers a detailed analysis of the new legislative provisions, providing an essential guide for manufacturers, importers, and distributors in the automotive industry. Its aim is to examine and assess the implications of the law and to provide an impartial interpretation to balance contractual relationships and promote competitiveness in the market.

Analysis and Key Findings

Law No. 108/2022, published in the Gazzetta Ufficiale on August 5, 2022, introduces new provisions regulating vertical agreements between manufacturers or importers and authorized distributors. These agreements pertain to the marketing of new vehicles and motor vehicles registered for no more than six months and with less than 6,000 kilometers on the odometer.

Distribution agreements must have a minimum duration of five years or be for an indefinite period. In the event of withdrawal from an open-ended agreement, a written notice of twenty-four months is required. For fixed-term agreements, the notice must be given at least six months before the expiration date.

Before the conclusion of a contract and in the event of any modifications, the manufacturer or importer is required to provide the authorized distributor with all the necessary information to enable a conscious assessment of the contractual commitments and their economic, financial, and asset sustainability. This preliminary information is essential for the distributor to make informed decisions, considering the expected costs and revenues from the agreement.

In the event of early termination by the manufacturer or importer, the law requires the payment of fair compensation to the authorized distributor. This compensation is intended to cover the costs and risks undertaken by the distributor, thereby protecting their investments and ensuring fair treatment.

Law No. 108/2022 also includes specific measures to protect authorized distributors in other Member States of the European Union. These measures are designed to ensure fair competition and prevent contractual abuses. In compliance with European regulations, vertical agreements must adhere to the provisions of Article 101 of the Treaty on the Functioning of the European Union (TFEU), which aims to prevent restrictions and distortions of competition within the internal market.

Tommaso Bortolomiol, CEO of Quintegia, emphasizes the importance of this study: “In such a complex field as the legislation on vertical agreements, full of articles, interpretations, and rulings, in-depth knowledge is essential. We are in a period of profound transition for the entire retail industry, particularly for automotive distribution, where the debate between the Dealership model and the Agency model is at the center of the discussion, and which is also facing the entry of new manufacturers from markets accustomed to different models and legislations. – Bortolomiol continues – A crucial point of the new legislation concerns the non-derogability of its provisions. The law stipulates that no contractual clause can exclude or limit the rights of distributors as provided by the new regulations. This means that any agreement between manufacturers and distributors must comply with the rules established by Law No. 108/2022, thereby ensuring greater protection for distributors and increased transparency in commercial relations.”

“The regulation on the duration of agreements and notice periods for termination is one of the key points for stability and predictability in contractual relationships. – Bortolomiol continues, focusing on duration and notice periods as one of the focal points of the discussion: – Law No. 108/2022 introduces the requirement of a minimum duration of five years for distribution agreements, with the possibility of early termination only with a written notice of twenty-four months for open-ended agreements. This provides distributors with a stable time frame to plan and manage their activities, reducing uncertainty and encouraging long-term investments. However, the law also provides appropriate flexibility for both parties, allowing for the renegotiation of agreements if necessary.”

Conclusions

The study “La disciplina della distribuzione automobilistica” provides a comprehensive overview of the new legislative provisions, emphasizing the importance of balanced regulation to promote market competitiveness and stability. The analyses presented offer industry operators the necessary information to adapt to the new regulations, ensuring transparency and fairness in contractual relationships.

You can find the complete study “La disciplina della distribuzione automobilistica” and other Quintegia content on our e-commerce site at the link shop.quintegia.it