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Brittany Ferries has launched legal action against DFDS, accusing its ro-ro rival of unfair competition on the Dieppe-Newhaven crossing.
The Danish line operates the cross-Channel route on behalf of Normandy’s Seine-Maritime department, and a brief history of the service, which transports some 65,000 trucks annually, provides some background to the French ferry company’s grievance.
In 2001, following the withdrawal of private operators, the Normandy authority maintained the route by creating a public-private structure, SMAT, which acquired the East Sussex port’s East Quay, adjacent land and buildings, and outer harbour from Sea Containers, a deal valued at £15m. It also acquired two ships, operating under the Transmanche Ferries brand.
Since 2014, the service has been operated by DFDS. However, the regional auditing office has described the concession’s business model as “fragile”, requiring regular replenishment by the public-private structure, and estimates subsidies granted since 2001 total around €420m, of which almost half (€195m) was paid between 2014 and 2021.
Brittany Ferries chairman Jean-Marc Roué argues that such financial support “distorts competition” by ”disconnecting the route from economic reality”.
He said: “DFDS tickets are sold at between 40% and 50% less than ours, even though the resources deployed are similar. This draws a significant proportion of freight and passenger traffic to the Newhaven-Dieppe route, to the detriment of Brittany Ferries.”
Mr Roué estimates the financial prejudice since 2013, at €150m.
In a complaint lodged with the Commercial Court of Brest and the EU Directorate-General for Competition, Brittany Ferries is demanding the aid be stopped and the loss of revenue reimbursed.
However, SMAT chairman Alain Bazille claims its pricing policy is not unfair. He said: “The sole purpose of the public service compensation is to make up the deficit linked to the obligation imposed under the concession to provide 1,690 crossings throughout the year, including in the low season.”
Brittany Ferries tendered for the concession in 2022, submitting an alternative to its business model by proposing to reduce the amount of subsidy granted by 50%. However, its bid was rejected on the grounds that it “modified the public service obligations set”, according to SMAT.
Following an initial hearing on 16 May, the Brest Commercial Court will examine the case again on 6 June.
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