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(2004/C 65 E/255)

WRITTEN QUESTION P-2883/03

by Charles Tannock (PPE-DE) to the Commission

(22 September 2003)

Subject:   Accusations of price-fixing by cross-channel ferry companies

Although it is possible to cross the English Channel by ferry and return the same day very cheaply, the price of a ticket on all the ferry companies is far higher, sometimes as high as hundreds of pounds, for anyone wishing to stay longer. Given that the service is exactly the same, there is the suggestion not only that day-trippers are being subsidised by longer-stay passengers but that the fact that all the companies appear to follow this practice amounts to illegal price-fixing. Does the Commission believe that this is the case and, if so, has the Commission asked all the cross-channel ferry companies for an explanation of their pricing policies?

In addition, there is evidence that passengers buying cheap return tickets on their credit cards on ferry companies and who do not, for whatever reason, use the return fare are charged an enormous surcharge, equivalent to the price of a longer-stay fare, without their agreement. Airlines flying to or from European destinations have also been known to charge more for single fares than for return fares, and to charge significant surcharges to passengers who buy a return fare but only travel one-way.

Does the Commission believe that there is any justification for such fare structures and does the Commission believe that they conform to European competition requirements?

Answer given by Mr Monti on behalf of the Commission

(20 October 2003)

Transport operators within the Union are in principle free to set their own prices which would normally include the possibility to set different prices for customers demanding different types of services. Transport services can be differentiated by various objective factors targeted at the specific needs of different customers. The Commission cannot object as such towards a pricing system whereby day-tickets designed to attract new demand and aimed for a short notice target group are offered at different conditions, including different fares, than standard return services.

Community competition law would, however, be infringed if two or more undertakings have agreed to commonly restrict the availability of cheaper tickets. Also, certain price discriminations by undertakings holding a dominant position could violate Community competition law. These rules apply both to the maritime sector and the air sector.

As regards the cross-Channel practices referred to by the Honourable Member, it should be noted that the Commission has recently carried out inspections at the premises of a number of operators of cross-Channel transport services (1). The purpose of these inspections was to ascertain whether these undertakings are inter alia fixing prices and trade conditions for cross-Channel transport services. Commission's investigation will include a thorough review of the pricing practices referred to by the Honourable Member. The Commission's position will be made known once the assessment is completed.

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(1)  MEMO/03/168 of 3 September 2003; Press release on inspections in cross-Channel transport services.

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