ACM guidance regarding car dealer mergers

The Netherlands Authority for Consumers and Markets (ACM) has published a guidance document regarding the way in which ACM assesses mergers and acquisitions of car dealers. With this guidance, ACM offers the sector clarity regarding the way in which ACM assesses car dealer concentrations. This guidance document describes step-by-step what information car dealers must submit when filing a concentration notification, and what analyses they will have to perform in that context. With this approach, ACM seeks to make assessments of car dealer mergers as efficient and accurate as possible, both for ACM as well as for the notifying undertakings.

For several years now, a consolidation wave has been sweeping the car dealer sector. Since 2019, ACM has been notified of over 50 mergers and acquisitions in this sector. Car dealers are predominantly active in selling passenger cars, offering maintenance and repair services, and selling original car parts. The guidance document offers a step-by-step explanation of the methodology for analyzing the effects of an acquisition or merger for each of these core activities.

Investigations into car dealer sector

Several ACM investigations into the car dealer sector form the basis of this guidance document. In 2024, ACM conducted an extensive investigation into maintenance and repair services as well as into the sale of original car parts, as part of an acquisition of car dealer locations for the brands BMW and MINI. Following that investigation, ACM conducted a general market study into the sale of passenger cars in the Netherlands. For this purpose, ACM commissioned a consumer survey carried out among buyers of new passenger cars, and sat down with multiple businesses and sector organizations. In addition, ACM analyzed sales data to determine how far a customer drives to purchase a new passenger car. The guidance document discusses the results of this general market study into the sale of cars. Also, the conclusions from the previous investigation into maintenance and repair services, as well as into the sale of original car parts, are concisely recapped in this guidance.

Step-by-step explanation, keeping administrative costs in mind

ACM also wishes to offer the automotive sector practical guidance by offering a step-by-step explanation of analyses that notifying businesses need to perform if they wish to file a concentration notification. In that context, ACM uses various threshold values to limit the administrative burden for businesses, where possible. If the notifying parties stay below these threshold values, then a simple calculation of market shares at the national and provincial level will suffice, for example. If the threshold values are exceeded, the guidance document explains what steps need to be taken.