WRITTEN QUESTION P-3419/00

by Christopher Huhne (ELDR) to the Commission

(30 October 2000)

Subject: Cross-channel ferry operators

Is the Commission aware that both Eurotunnel and the cross-channel ferries were charging GBP 350 for a return fortnight last summer? Does the Commission believe that this price reflects the full play of market forces?

Will it please describe the market shares of the current operators on this route and state whether in its view the number of competitors and their respective shares are likely to lead to competitive prices and services for consumers as the Commission expected when it approved the P&O Stena joint venture on their short sea ferry operations (decision 1999/421/EC)(1)? Can the Commission confirm that it is currently investigating the effects of this joint venture on the market for cross-channel ferry travel?

What measures is it undertaking to ensure that there are no price-fixing arrangements in force on this key transport route between Member States?

(1) OJ L 163, 29.6.1999, p. 61.

Answer given by Mr Monti on behalf of the Commission

(29 November 2000)

The Commission does not systematically monitor the prices charged by cross-channel operators. However, media surveys of prices published in early 2000 indicated that the peak period prices (for a car with driver and passengers) for a standard return ranged from GBP 318 to GBP 390. The three main operators charged between GBP 340 and GBP 360, which matches the GBP 350 figure cited by the Honourable Member.

It is important to note that customers paid less if they booked early, or travelled at off-peak times. For example, customers booking before April for an off-peak period in the summer would have paid, depending on the operator, between GBP 165 and GBP 189.

Although the Commission has no evidence to lead it to conclude that those prices do not reflect the full play of market forces, it is of course concerned that there should be effective competition between cross-channel operators. An assessment of competition between the operators will be central to the Commission's assessment of an application for renewal of the current exemption of the P&O Stena Line joint venture(1). The exemption expires in March 2001, and the Commission expects shortly to receive an application for its renewal. At this stage the Commission has not started its investigation and does not have recent figures for the market shares of the operators. The Commission is therefore not yet in a position to draw conclusions, as sought by the Honourable Member, as to the continued likelihood of competitive prices and services.

As for measures to ensure that there are no price-fixing agreements on this key transport route, the Commission will take appropriate action if it receives evidence of secret cartel agreements. The operators are doubtless aware of the Commission's decision-making practice as regards price-fixing cartels between competitors and of the Commission's guidelines on the methods of setting fines(2).

The Honourable Member is urged to forward to the Commission any evidence that he might have of price-fixing agreements.

(1) Commission Decision 1999/421/EC of 26 January 1999 relating to a proceeding pursuant to Article 85 of the EC Treaty (Case IV/36 253 P&O Stena Line) (OJ L 163, 29.6.1999).

(2) OJ C 9, 14.1.1998.