Market power abused?: Weko drives BMW to the curb

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The Competition Commission (Weko) is investigating whether BMW violated antitrust law. (archive image)

The Comco will investigate whether BMW has relative market power over the garage and has therefore violated antitrust law, the Competition Commission announced in a statement on Thursday.

The garage was an authorized dealer and service point for BMW and Mini vehicles for decades. She accuses BMW of offering her the prospect of expanding her business relationships and pushing her to invest millions.

Depending on BMW

BMW then unexpectedly ended the collaboration without offering a suitable interim solution, writes Comco. The garage is dependent on its continued business relationship with BMW to be able to amortize its $1 million investment.

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Comco director Patrik Ducrey (61) does not want to provide information about the size of the investment when asked. But they are significant investments. He couldn’t say anything anymore.

The presumption of innocence applies to BMW.

BMW is no stranger to Comco

This is the first case related to the new provision on relative market power, which came into effect on January 1, 2022, according to Comco director Ducrey. For the first time, abuse of relative market power was alleged in a garage that closed down after significant investments. “But we expected such cases.”

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The German car company is no stranger to the Comco: BMW had to pay a huge fine of 157 million francs last decade for preventing parallel imports. The Federal Court ultimately rejected an appeal from BMW in 2017. (SDA)

Source:Blick

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Livingstone

I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I'm passionate about. I have worked in this field for more than 5 years now and it's been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.

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