Eurotunnel to appeal CMA decision to ban MyFerryLink from Dover
The confirmation by the Competition and Markets Authority (CMA) to uphold its decision made last year to ban the MyFerryLink ferries, Berlioz and Rodin, from the port of Dover for ten years, has brought a strong reaction from Eurotunnel.
CMA’s ruling is based, in part, on its view that current competition on the cross-Channel route is unsustainable and that the best option for freight customers would be Eurotunnel’s rail link and two other independent ferry operators.
However, in a statement, Eurotunnel offered the alternative opinion that 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.
Eurotunnel also outlined that the analysis made by the CMA is the opposite of that made by its French counterpart, even though it relates to the same market. The operator had asked the CMA to seek a convergence of views with its French counterpart, through the offices of the European Commission, to resolve the crisis.
Furthermore, Eurotunnel stated 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’.
Jacques Gounon, Chairman and Chief Executive Officer of Groupe Eurotunnel SA, 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.”
Eurotunnel has confirmed that it will appeal against the CMA’s decision.
Posted on: June 30th 2014