On 5 August 2022, the UK Competition and Markets Authority (CMA) accepted commitments from P&O Ferries Holdings Limited and DFDS A/S that address competition concerns raised by the CMA surrounding a ferry capacity sharing agreement between the Parties in the English Channel (the “Agreement”).
In arriving to its decision, the CMA accepted that the agreement will be of “very material benefit” to freight customers. The CMA’s approval of the Parties’ proposed commitments brought an end to the CMA’s investigation into the Parties regarding the competitive effects of the Agreement.
A CRA team including Raphaël De Coninck, Mikaël Hervé and Charlie Whitehead advised DFDS during the proceedings. CRA team’s economic work involved an in-depth assessment of the efficiencies and customer benefits that could be expected from the Agreement, relying on a mix of modelling and quantitative approaches. It also considered the likely impact on competition within the Short Sea market, in particular relative to Eurotunnel.
An investigation into the Agreement by the French competition authority is still ongoing.
For more details, please see the CMA press release here.