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Court orders Porsche to keep supplying independent parts firm

The UK’s Competition Appeal Tribunal (CAT) has ordered Porsche to continue supplying parts to an independent luxury car parts reseller, Eurospares, while the company’s wider competition claim against the manufacturer moves forward.

Eurospares has accused Porsche of breaching UK and EU competition rules by restricting parts supply to its own authorised dealer network.

According to the reseller, Porsche’s refusal to supply parts to independent specialists is anti-competitive and forms the basis of a standalone refusal-to-supply claim.

In granting Eurospares an interim injunction, the tribunal said there was a “credible case” that the company would suffer serious harm, including loss of market share and reputational damage, if Porsche were allowed to stop supplying parts before the legal claim is resolved.

The tribunal also noted that Porsche’s argument that it would face “uncompensatable harm” if it were required to continue trading was “less compelling”.

Eurospares’ legal team argued that Porsche’s behaviour amounted to a “hardcore restriction” of competition law, neither necessary nor proportionate, and the tribunal appeared to accept the seriousness of those allegations at this early stage.

Evidence presented to the court suggested that if supplies were cut off for several months, Eurospares could lose profits that would be difficult to calculate after the fact and almost impossible to properly compensate through damages alone.

The tribunal also accepted that customers and vehicle owners would likely turn to other suppliers if Eurospares could no longer source genuine Porsche parts, eroding the business’s competitiveness and weakening its online visibility, a key part of its market strategy.

Porsche had argued that Eurospares lacks the technical know-how to safely handle and distribute certain parts, raising alleged safety concerns.

The tribunal dismissed that suggestion, pointing out that Porsche had supplied Eurospares for several years without complaint or issue.

The judgment, according to one of Eurospares’ counsel, Tom Smith of Geradin Partners, ensures the company can continue sourcing genuine Porsche parts it has relied on for almost seven years while the claim proceeds.

The decision is a significant early win for Eurospares and a notable development for independent parts distributors, as it suggests courts may be more willing to intervene where selective distribution practices threaten aftermarket competition and consumer choice.

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