F&I and Showroom, April 2018

www fi magazine com 8 F I and Showroom April 2018 DEVELOPMENTS The Federal Trade Commission FTC has blocked the sale of Auto Mate Dealership Systems to CDK Global charging in an administrative complaint issued late last month that the proposed merger violates federal antitrust laws The two companies subsequently announced they are abandoning the proposed merger According to the regulators complaint CDK Globals proposed acquisition of Auto Mate would reduce competition in an already concentrated market as well as substantially eliminate current competition between the two companies and other market participants The FTC also charged that Auto Mate was poised to become an even stronger competitive threat in the future noting that the two parties understated the most likely anticompetitive effects of the transaction The commission had authorized FTC staff to seek a temporary restraining order and a preliminary injunction in federal court to prevent the merger pending the administrative proceeding when the two companies announced that the sale was off Todays announcement from CDK and Auto Mate that they have decided to abandon their proposed merger is good news for new car dealers across the country said Bruce Hoffman acting director of the FTCs Bureau of Competition Despite Auto Mates relatively small market share it was winning a significant share of opportunities from CDK a larger share than Auto Mates overall market share might have suggested showing that Auto Mate was a strong competitor to CDK According to the FTCs complaint although smaller than CDK and Reynolds Reynolds currently the two largest DMS providers to new vehicle dealers Auto Mate had been winning business by offering dealers lower prices flexible contract terms free software upgrades and training high quality customer service and modest fees to integrate third party applications Auto Mate officials said the company is no longer for sale and its shareholders are no longer considering other offers This decision and the governmental review process we just completed was arduous and quite frankly we dont have the stomach to go through it again said Auto Mate President and CEO Mike Esposito Auto Mates senior management team and I will remain at the helm Its no secret that in recent years we had made substantial inroads into the customer bases of both CDK and Reynolds and Reynolds switching several large auto groups that have been their bread and butter onto our system he added With the deal behind us we can double down on our primary focus delivering the markets best software and best support to our dealers FTC Blocks CDK Globals Acquisition of Auto Mate APPEALS COURT VACATES SOME FCC RULES ON ROBOCALLS A federal appeals court rolled back rules aimed at curbing the more than 200000 robocall related complaints the Federal Communications Commission FCC says it receives annually noting that the agencys 2015 ruling invites the conclusion that all smartphones are autodialers In its 3 0 ruling the D C Circuit Court of Appeals vacated key elements of the FCCs 2015 declaratory ruling and order under the Telephone Consumer Protection Act TCPA including the commissions explanation of which devices qualify as automated telephone dialing systems and its approach to calls made to a phone number previously assigned to a person who had given consent but has since been reassigned to another nonconsenting person We uphold the commissions approach to revocation of consent under which a party may revoke her consent through any reasonable means We also sustain the scope of the agencys exemption for time sensitive healthcare calls the D C Circuit Court wrote in its opinion in part We set aside however the commissions effort to clarify the types of calling equipment that fall within the TCPAs restrictions The commissions understanding would appear to subject ordinary calls from any conventional smartphone to the acts coverage an unreasonably expansive interpretation of the statute As for the TCPAs approach to calls made to a phone number previously assigned to an individual who had given consent but has since been reassigned to another nonconsenting person the court determined that the one call safe harbor is arbitrary and capricious The challenge of the FCCs rules was brought by ACA International within hours of the commissions July 2015 TCPA order The association of credit and collection professionals argued in its petition that the FCCs exercise of regulatory authority expanded the scope and reach of the TCPA in a way Congress never intended ACAs appeal as well as subsequent appeals filed by nine other businesses and organizations was later centralized in the D C Circuit by the Judicial Panel on Multidistrict Litigation We applaud the court for making the right decision today because it supports legitimate law abiding businesses and recognizes that technological advancements in the ways people communicate are good for society as a whole said ACA International CEO Mark Neeb Clearly the courts opinion in ACA Intl is one of the most significant impacting the TCPA and the TCPA rules going forward PHOTO COURTESY OF AUTO MATE The Federal Trade Commission blocked the sale of Auto Mate to CDK Global a move that sent shockwaves through the industry