ATLANTA -

In the latest development surrounding the remarketing industry’s multiplatform system initiative (MPS), Manheim and several other industry participants filed a request Thursday morning with the U.S. Department of Justice. The filing, Manheim said in its announcement, requests confirmation from DOJ that MPS complies with antitrust laws.

Beyond Manheim, industry participants include:

— Independent digital auction technology company WTG Global (Whann Technology Group)

— Regional auction company BSC America Inc.

— Columbus Fair Auto Auction

“This important action adds to the momentum building and due diligence around MPS and keeps the project on track to produce live transactions this year,” said Janet Barnard, president of Manheim North America. “As an industry leader, we take very seriously the need to innovate to address the changing needs of our customers and the long-term interests of our industry.”

Whann Technology Group founder Keith Whann added in the announcement: “We are proud to be part of the collective effort to establish an MPS that links auctions, consignors, dealers and industry members, and allows bidding across virtual auction marketplaces.

“Constructed as a marketplace of marketplaces, it will enable each of our auction customers — at no additional cost — to have a microsite on WTG Global that would also be integrated into MPS. This enables each auction to enhance their customer’s experience and maintain the feel of a local auction, yet have the reach to sell vehicles worldwide,” he added.

Getting into specifics, Manheim said the DOJ filing requests a Business Review Letter detailing the Justice Department’s “enforcement intentions” on MPS.

Manheim explains the three “core elements” of MPS as outlined below in its statement Thursday morning:

  • Accessibility. It will be open to large and small wholesale auto auctions and their customers, and they will have multiple means of accessing the system.
  • Protection of Competition-Sensitive Business Data. Auction fees and other proprietary data will not be shared among participating auctions.
  • Limited Costs to Participants.  Auctions will incur modest costs that reflect only what is needed to maintain and update the system.

In the news release, Manheim described the system as a “central clearinghouse” similar to what exists in the real estate, airline and financial services industries.

Barnard added: “Manheim remains committed to having MPS positioned as an industry-wide effort. Our leadership believes that concerns expressed around antitrust risks and high costs are unfounded because MPS has been shaped with these issues in mind from the outset.”  

Editor's Note: Stay tuned to Auto Remarketing Week in Review on Friday morning, where we will have two follow-up stories surrounding the multiplatform system initiative.