So called "location clauses" are no longer legal in car distribution
contracts as of the 1 October 2005.  When the European Commission
reformed its competition rules for car distribution in 2002, location
clauses were given an extra three years before they were outlawed to
allow carmakers time to adjust to the new car distribution rules. 
This final change signifies the completion of the overhaul of the
rules, a reform which is aimed at boosting cross-border competition and
harmonising car prices throughout Europe.  Distributors are now
free to establish themselves anywhere in the EU, for example in a
country where cars are more expensive, and they are able to operate
multi-branded shops with several makes of cars.

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