Groupe Eurotunnel Says CMA’s Ban Is Absurd

Groupe Eurotunnel stated that the decision of June 2013 was rejected on appeal in December of 2013, as the purchase via public auction of the assets of a business that had been liquidated nine months previously could not be considered as the acquisition of an enterprise. The short straits freight market has changed dramatically, in terms of competition and growth since 2011/2012, when SeaFrance went into administration.

The current freight market shares by operator: Eurotunnel: 37%, P&O: 29%, DFDS: 24%, MyFerryLink: 9% show that the competitors in the ferry market have strong positions that are in no way threatened by MyFerryLink.

” The analysis made by the CMA is the opposite of that made by its French counterpart, even though it relates to the same market,” Groupe Eurotunnel said. “Groupe Eurotunnel asked the CMA to seek a convergence of views with its French counterpart, through the offices of the European Commission.”

Groupe Eurotunnel says it cannot understand why the CMA refused such an opportunity to resolve this crisis, voicing its belief that by removing one competitor from the market, the CMA is creating a de facto duopoly in the maritime sector which will lead to an increase in prices for consumers and a reduction in revenues for the ports of Dover and Calais, without taking account of the social drama it will generate for the 600 employees of the SCOP.

Groupe Eurotunnel says it is astonished by the length of the prohibition, which includes any minority participation, and also that the CMA recommends selling the ships to another operator. Groupe Eurotunnel can only appeal such an un-just decision.

The group’s Chairman and chief executive Jacques Gounon said: “The decision by the CMA is a denial of the reality of the situation. It penalises the consumer and puts 600 people out of work without any real justification.”

“We continue fundamentally to disagree with the CMA on a number of critical points.  First and foremost we do not consider that the CMA has jurisdiction to review the transaction as a matter of UK merger law.

It is also manifestly the case that the CMA’s decision, which will reduce choice, is bad for consumers, bad for competition and bad for all those involved in cross-Channel operations (staff, employees, customers and the wider regions in both Dover and Calais),” My Ferry Link commented on the decision.

 “We will therefore be appealing to the CAT to seek its review of the CMA’s revised conclusions in this regard.  Given that any appeal is unlikely to be finally determined until much later this year at the earliest, we would like to reassure our loyal customers that we will continue to operate our full schedule throughout the summer season and beyond.

MyFerryLink operates up to 24 daily crossings on the Dover-Calais route, with high season summer fares starting from £39 each way for a car and up to nine passengers,” the company concluded.