The Netherlands Authority for Consumers & Markets (ACM) has published new guidelines on how the regulator assesses mergers and acquisitions in the car dealership sector.
This guideline provides car dealers with guidance on merger notifications and clarifies which information companies must provide. With this approach, the ACM wants to ensure an efficient and accurate assessment of market concentrations, both for itself and for the companies that submit a notification.
The guideline is a direct response to the wave of consolidation that has gripped the car dealership sector in recent years. Since 2019, more than fifty mergers and acquisitions within this sector have been reported to the ACM. This is due to the strong competition and the need for economies of scale within the automotive sector. In addition to the sale of passenger cars, car dealers are increasingly focusing on additional services such as maintenance, repairs and the sale of original parts. In order to determine whether an acquisition or merger has harmful consequences for the market, the guideline describes a structured method to analyse the impact on these core activities.
car dealership industry
The ACM bases the guidelines on extensive market analyses and recent studies. In 2024, the regulator conducted an in-depth investigation into the impact of takeovers in the sector, with specific attention to maintenance and repair services and the sale of original car parts. An important reason for this was the takeover of BMW and MINI dealerships, for which the ACM closely examined the market position of the companies involved.
In addition, the ACM conducted a broader market survey into the sale of new passenger cars in the Netherlands. Consumer research was conducted among car buyers to gain insight into their purchasing behavior. The regulator analyzed sales data and investigated how far consumers are prepared to travel to purchase a new car. Various industry organizations and companies were also consulted to gain a complete picture of market developments.
The results of this market research are summarized in the handout and provide a clear picture of the competitive position of car dealers. The ACM emphasizes that this information is not only relevant for supervisors, but also for companies that want to prepare for a merger or acquisition.
step by step approach
An important goal of the guidelines is to reduce the administrative burden for companies. The ACM therefore offers a clear, step-by-step description of the analyses that car dealers must perform in the event of a concentration notification. To prevent companies from having to provide an unnecessary amount of data, the supervisory authority is introducing threshold values.
If a company remains below these thresholds, a simple calculation of market shares at national and provincial level is sufficient. If these limits are exceeded, the guideline describes which additional analyses are needed to map the market effects. This approach makes it easier for companies to meet the obligations without unnecessary bureaucratic obstacles.
The ACM hopes that this guide the car dealership industry to navigate the complex process of mergers and acquisitions. By providing clear guidelines, the regulator aims to create a more transparent market, in which both companies and consumers benefit from fair competition and a wide range of products and services.
