EU exec proposes extending car antitrust exemptions

BRUSSELS, July 22 (Reuters) - Carmakers can continue to set up networks of selective and exclusive dealerships for another three years in line with antitrust exemptions for the sector, European Union antitrust regulators said on Wednesday.

The European Commission, tasked with ensuring a fair playing field in the 27-country EU, said it saw no signs of significant competition shortcomings in the region arising from the current exemptions which will expire in May next year.

The block exemption allows car manufacturers to bypass EU competition rules and sell cars through franchised dealerships.

The European Union executive said it proposed extending the current regulation for three years and invited comments from interested parties.

"It is important to give the automotive sector, one of the most important sectors in the EU, legal certainty and predictability as to the future competition law regime," Competition Commissioner Neelie Kroes said in a statement.

"This holds even more true in times of crisis," she said.

The automotive industry worldwide has been hit hard by an unprecedented sales crisis fuelled by the global economic slowdown, with some automakers newly emerging from bankruptcy and many struggling to reinvent themselves. [ID:nCARS1] (Reporting by Foo Yun Chee, editing by Timothy Heritage)