Brussels, 29/05/2002 (Agence Europe) - The EP is preparing to vote on the Christoph Werner Konrad (EPP, Germany) report on the Commission's Draft Regulation on car distribution. The report supports the "courageous approach" of the Commission in reconsidering the application of Community competition rules in the car industry. The report asserts that the Commission has opted for a solution that completes the system currently in force, opens up a protected sector and takes into account the specific product, namely, the motor car. The rapporteur believes that the possibility of multi-brand distribution constitutes "notable progress" and welcomes the separation of the after-sales service and distribution, "which doesn't exist in other sectors". Mr Konrad also stresses that even if the Commission draft regulation does not totally ensure access to car supermarkets and Internet distributors for car distribution, the Commission has at least opened the door to these two areas of activity. The rapporteur does, however, consider that the draft regulation remains too complicated and not clear enough in its aims. He is requesting that several points in the regulation be improved by introducing amendments that will ensure legal security for dealers and limit the impact of total competition. Amendments will focus on: the link between garages and distributors, sales and different brands in the same outlets, spare parts, legal contracts, timetable for applying the new system and the October 2003- 1 October 2005 report on the proposals concerning the freedom of dealers to set up in other Member States (questioned about this subject during an EP hearing last week, Mario Monti explained that he was not against this possibility, "but only for this clause" (see EUROPE 24 May page 15). According to the Economic and Monetary Committee, new proof should be provided demonstrating that this freedom is necessary for ensuring cross-border competition, as well as guaranteeing more time for small and medium sized retailers to adapt to the changes. The other amendments intend to: guarantee that when sub-contractors are used, the after-sales service is close to the distributor; that a greater choice of brands is encouraged in the same outlet; legal guarantees are strengthened protecting the consumer in this new commercial environment. MEPs are also requesting that the Commission does not delay in producing a report on tax disparities in car sales in different Member States, their impact on vehicle prices and the way in which to create a real internal market. They are calling on the Convention and the IGC to make the rules such as the one being examined becomes the object of the co-decision procedure. The European Commission has exclusive competence in competition matters, with the EP enjoying a consultative role.