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The Competition Appeal Tribunal has today issued an interim injunction, ordering Porsche to continue to supply parts to an independent reseller of luxury car spare parts, Eurospares, pending the determination of Eurospares’ claim alleging breach by Porsche of the Competition Act 1998 in the design of its selective distribution system.
The background to the application was that in September 2024 Porsche discontinued supply to Eurospares stating that supply of spare parts could only be made available to authorised dealers under Porsche’s selective distribution system. As part of that system, Porsche generally requires that authorised dealers offer repair services, thereby excluding independent resellers of spare parts who do not carry out repair and maintenance services.
Eurospares claims that this contractual term amounts to a hardcore restriction on competition and amounts to to discriminatory and self-preferencing abuse. Porsche contests the claim. The Tribunal will now adjudicate on the parties’ respective positions in an expedited trial.
In granting the interim injunction, the Tribunal was satisfied that there existed a serious issue to be tried. It accepted that Eurospares would suffer serious harm that would not be compensable in damages. It was also satisfied that the balance of convenience was in favour of ordering the interim injunction as the risk of harm was greater to Eurospares than Porsche.
The Tribunal refused Eurospares’ application for the proceedings to be allocated to the fast-track procedure because it considered that the likely length of trial would make this unsuitable. However, the Tribunal gave directions for future costs management of the proceedings.
Anneli Howard KC and Khatija Hafesji acted for Eurospares, instructed by Geradin Partners.
Conor McCarthy acted for Porsche (led by Sarah Abram KC), instructed by CMS Cameron McKenna Nabarro Olswang LLP.