The Competition and Markets Authority has upheld the former Competition Commission’s decision that requires ferry servicer Eurotunnel to divest its controversial Dover route, say reports.
The Commission, which was combined with the Office of Fair Trading to become the CMA last April, ruled last June that Eurotunnel must divest the route as a consequence of its acquisition of assets following the demise of onetime rival SeaFrance, purchased in 2012. But Eurotunnel appealed the decision, and the Competition Tribunal ordered the Commission to reexamine its decision.
The Tribunal’s order questioned the Commission’s jurisdiction to require divestitures from an entity that is considered an asset or an enterprise.
But the CMA announced this week that Eurotunnel has a majority of the market share of the cross-Channel route, which could lead to higher consumer fees and could lead to the exit of one of its rivals.
Eurotunnel, which runs the route through its MyFerryLink service, could be forced to end the operations by the end of the year; the company, however, has vowed to challenge the CMA’s decision.
Full content: The Guardian
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