The Italian Supreme Court rules that the reorganization of the Italian distribution network of a car manufacturer does not breach competition law (Volkswagen)

By the recent Volkswagen Group Italia (VGI) judgement [1], the Italian Supreme Court or Court of Cassation (the Court) has ruled that the plan for the reorganization of its Italian distribution network implemented by a German car manufacturer did not breach competition. The Court considered the reorganization plan as a legitimate business strategy, which did not restrain intra-brand competition. The facts of the case The applicant, Ballan Automobili Srl (BA), now subjected to an insolvency procedure, was an authorized dealer of Audi cars in the region of Umbria. The respondent, Volkswagen Group Italia (VGI), was the Italian exclusive importer of all the cars manufactured by the Volkswagen group. VGI decided to reorganize and streamline the Italian distribution network of Audi

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  • Desogus Law Office (Cagliari)

Quotation

Michele Giannino, The Italian Supreme Court rules that the reorganization of the Italian distribution network of a car manufacturer does not breach competition law (Volkswagen), 13 October 2016, e-Competitions Bulletin Automobile, Art. N° 82383

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