The Research On Vertical Restraints In Automobile Sales4S Mode

Automobile Sales4S Mode is a commercial rfanchise system which includesSale, Spare part, Service and Survey. Several reasons, including car manufactures’protection of rfanchise system, car dealers’ dependency on manufactures and so on,lead to a number of vertical restrains in4S mode.Lowest price restraint, sales territoryrestriction and tying arrangement of maintenance service are three kinds of typicalvertical restrains in4S Mode. Although businessmen claim that they are based onreasonable commercial grounds, their negative effects have outweighed the positiveeffects.Lowest price restraint dose not promote interbrand competition, but disruptsthe normal price mechanism, forcing customers to pay more. The absolute areaprotection of sales territory restriction completely removes internal competition,which is far beyond the need of exploiting commercial franchise’s advantages to thefull. Besides, this restraint leads to monopoly-higher price, damaging customers’ rightof choice and the right of fair trade. Tying arrangement of spare part and maintenanceservice results in unreasonably high prices, impairs the fair competition ofafter-market and damages customers’ right of choice and the right of fair trade. So, allthe vertical restraint arrangements mentioned above should be regulated by law.However, there are many defects in China’s Anti-monopoly Law and Auto BrandSales Management Regulation, so they are unable to effectively regulate the verticalrestrains in4S mode. By contrast, the model of vertical restraints regulation in theUnited States and E.U. are mature. So we should take their legal experience forreference to perfect China’s Anti-monopoly Law and Auto Brand Sales ManagementRegulation, guaranteeing the health development of car sales market and carafter-market.