The Block Exemption Regulation is an exemption in a business line or industry, which debars organizations in the industry from some business activities in order to create competition. The regulation is highly known in the automobile industry due to the effect caused by the Block Exemption Regulation (BER) from the European Commission. BER has changed the automobile industry in the last decade. Prior to 2003 automobile owners in the EU region risk nullifying their vehicle warranty when the vehicles were serviced or repaired in workshops not belonging to the vehicle manufacturer or its dealers. This barrier was broken in October 2003, when the European Commission (EC) passed a law allowing vehicle owners the freedom of having their servicing and repairs done at their chosen workshop.
According to the UK Department of Business Education & Skills, the empowerment created by this law provides competition in the automobile industry as vehicle owners now have the opportunity to repair and service their vehicle at alternative workshops to the automobile manufacturers. BER provides automobile users the flexibility and benefit to reduce the amount spent on servicing, thereby providing consumers more choice and better value for money.