THE European Commission has launched infraction proceedings against DaimlerChrysler. The car giant is accused of preventing its dealer networks in Germany, Belgium, Netherlands and Spain from selling cars to foreign customers between 1985 and 1996.

The EC claims it has papers which show that DaimlerChrysler instructed dealers not to sell to foreigners and said it would impose commission charges on those who sold vehicles to customers abroad. The manufacturer has two months to respond to the complaints, after which the EC may launch legal proceedings. A statement from DaimlerChrysler dismissed the charges as 'unjustified'.

VW has fallen foul of the same anti-trust regulations and news has emerged of an EC raid on Renault headquarters in Paris and Dublin as part of an investigation into allegations that Irish dealers have been blocked from selling Renault cars into the UK. These issues will fuel the case against the block exemption which exempts car distribution from European anti-trust rules.