Under the radar: Roll on, roll off, roll over – here's a leading indicator
Talking about poorly advertised key leading indicators.
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The Competition and Markets Authority (CMA) published a draft order on 23 July 2014, with the intention of preventing Groupe Eurotunnel from operating ferries from the port of Dover. The draft was published to enable consultation with the interested parties.
In this context, Groupe Eurotunnel prepared a certain number of observations for the CMA with the objective of, amongst other things, enabling MyFerryLink to continue its business under optimal conditions whilst awaiting the outcome of the appeal which will be heard on 24 and 25 November 2014.
Today, the CMA has published its final order, having rejected all of the observations put forward by Groupe Eurotunnel. This order, which prevents MyFerryLink from continuing its business would come into effect six months after a rejection of the appeal brought by Groupe Eurotunnel against the CMA’s decision.
This position confirms in Groupe Eurotunnel’s opinion the unalterable determination of the CMA to bring to an end the activities of MyFerryLink.
As such, and under the hypothesis that the Competition Appeal Tribunal (CAT) simply remits its judgement to the CMA, as it did in December 2013, Groupe Eurotunnel would have to reflect on the possibility of continuing to support the activity. The order published today could weigh heavily on the forthcoming annual contract negotiations between MyFerryLink and the major cross-Channel freight transporters.
Groupe Eurotunnel reaffirms that acquiring assets, in an open auction through the Paris Commercial Court, can in no way be compared to the purchase of the activities of SeaFrance, as the CMA interprets it. Entrusting the operation of the ferries to maritime workers, for all that many had previously worked for SeaFrance, regrouped into an independent workers co-operative (SCOP), is neither illogical nor reprehensible.
Groupe Eurotunnel strongly regrets the position that the CMA holds and its inevitable consequences.
Comment on this article
Keith Barker-Main
September 20, 2014 at 9:28 amAfter the demise of the hovercraft services which were the fastest, tThe route is better served since MyFerryLink took to it. We should be encouraging, not stifling, operators.
Terence Bone
October 15, 2014 at 10:32 pmAbsolutely disgusting decision to ban myferrylink, it makes me ashamed to be British. Ok so what if Eurotunnel are major shareholders at least they’re anglo french, DFDS who are complaining about it are actually Danish, what right do they have to tell us who operates in Anglo French waters, trust the British to shoot the British in the foot.
d.read
November 26, 2014 at 10:52 amnot to mention that P&O Ferries is owned by a company from Dubai……..
L Charlton
July 05, 2015 at 10:43 pmI thought the CMA were meant to look after the interest of the customers and maintain a competitive marketplace. A 60% share (Groupe Eurotunnel) is hardly a crushing majority considering most of that is in the monopolized train services.
The judge overseeing the proceeding has said the CMA were not competent in this situation as the companies were not merged per se.
Seen many empty ferries lately?
Come on CMA lets focus on areas that matter to the wider public, energy markets? How is that investigation going?