E.CA Compact

Cost benefit analysis of regulation

When reviewing the costs and benefits of sector specific block exemptions, the European Commission and other evaluating bodies often face the problem of quantifying the costs resulting from the responses of market participants to changes in the legal framework. However, cost quantification can be avoided if there is convincing evidence that the pro-competitive effects are limited. This note proposes a simple technique to identify such evidence in the context of multi-branding in the distribution of vehicles (Motor Vehicle Block Exemption Regulation).

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Keywords: motor vehicle block exemption, MVBER