ACCC Fines Honda $18,780 for Restricting Access to Diagnostic Tools Under MVIS Scheme
September 17, 2024The MVIS scheme aims to provide independent repairers with equitable access to the technical information necessary for servicing modern vehicles, thereby fostering a more competitive landscape.
It's important to note that while Honda has paid the penalty, this does not imply an admission of wrongdoing regarding the Competition and Consumer Act.
Lowe also stated that Honda's previous subscription model undermined competition by restricting access to essential technical information needed by independent repairers.
The Motor Vehicle Service and Repair Information Sharing Scheme (MVIS), which became effective on July 1, 2022, is designed to ensure that independent repairers have fair access to necessary diagnostic software and technical information, promoting competition in Australia's automotive service sector.
Recently, Honda Australia was penalized $18,780 by the Australian Competition and Consumer Commission (ACCC) for allegedly breaching the MVIS scheme by failing to provide independent repairers with adequate access to diagnostic tools.
The ACCC claims that from the inception of the MVIS until May 2024, Honda restricted access to its diagnostic software to an annual subscription model, which limited options for independent repairers seeking more affordable access.
In response to these concerns, Honda has since developed new technology that allows independent repairers to subscribe to the i-HDS software on a daily, monthly, or annual basis.
Catriona Lowe, the Acting Chair of the ACCC, highlighted the importance of flexible subscription options to enhance competition among repairers and ensure they can compete fairly with dealerships.
The ACCC's enforcement action against Honda marks the first of its kind under the MVIS scheme, with potential penalties for further violations reaching up to $10 million.
The Motor Trades Association of Australia has expressed support for the ACCC's actions, emphasizing that they contribute to maintaining a fair competitive environment for independent repairers.
Despite the advancements made with the MVIS, there are ongoing calls for improvements to adapt to the evolving automotive market, particularly with the rise of hybrid and electric vehicles.
The ACCC plans to release updated guidance on the MVIS scheme in the coming months to assist in ensuring compliance among automotive service providers.
Summary based on 3 sources
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Sources
CarExpert • Sep 18, 2024
Honda Australia the first to cop a fine for breaching info-sharing scheme