EU proposes extending car antitrust exemptions

BRUSSELS (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 said it saw no signs of significant competition shortcomings in the 27-nation bloc arising from the current exemptions which expire next May.

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

The Commission said it proposed extending the current regulation for three years to 2013 and invited comments from interested parties by September.

The automotive industry worldwide has been hit hard by an unprecedented sales crisis fueled by the global economic slowdown, with some automakers newly emerging from bankruptcy and many struggling to reinvent themselves.

The DJ Stoxx auto index .SXAP was down 1.54 percent in midday trading.

After 2013, the Commission proposed applying general competition rules to new car sales, citing problems with structural overcapacity and declining prices in the sector rather than competition shortcomings.

It said it might keep antitrust exemptions only for the after sales service and repairs sector once the current regulation expire next year, depending on comments from interested parties.

"These (exemptions) will address core aftermarket issues, such as independent operators' access to technical information, access to spare parts and access to the network of authorized repairers," the Commission said.

They will also address new issues which have become more prominent in recent years such as the misuse of warranties aimed at excluding independent repairers. Editing by David Cowell)