The Office of Fair Trading has today opened a public consultation on commitments offered by Epyx Limited stemming from OFT competition concerns regarding Epyx's conduct in the market for the supply of service, maintenance and repair (SMR) platforms.
Epyx supplies the 1link Service Network SMR platform in the UK, which helps businesses with vehicle fleets (such as leasing companies and rental companies) to procure SMR services for these vehicles from franchised dealers, fast-fit outlets and independent garages.
In response to the OFT's investigation under the Competition Act 1998 following a complaint alleging an abuse of a dominant position, Epyx has offered commitments that would relax or remove these contractual restrictions, giving Epyx's customers the freedom to work with, develop and sponsor alternative systems while also enjoying more frequent opportunities to switch supplier.
Customers will additionally benefit from technical support from Epyx, where this is reasonably necessary to facilitate switching.
The OFT has been concerned that certain provisions in Epyx's contracts may restrict its SMR platform customers - particularly those that manage vehicle fleets - from evaluating, developing, marketing and using alternative systems, and may therefore raise barriers to market entry.
The OFT considers that these commitments offer clear opportunities for competitors to enter the market and provide Epyx's current customers with the option to switch to rival suppliers if they choose to.
The OFT therefore proposes to accept these commitments, subject to consultation.
If accepted by the OFT, the commitments will bring the investigation to an end.
Ann Pope, senior director in the OFT's Services, Infrastructure and Public Markets group, said: "The OFT is consulting on whether these commitments will provide an immediate and effective means of encouraging meaningful competition in the SMR platform market in the UK.
" Under the proposed commitments, a range of existing barriers to entry should be significantly reduced and the market opened to choice and innovation.
"The OFT would now like to hear the views of all interested parties before it makes its decision on whether to accept the commitments."
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As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
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