Brussels, 08/06/2001 (Agence Europe) - On Thursday, the European Commission granted the joint venture P&O Stena Line a six year exemption in accordance with the EU competition rules, exemption allowing it to continue running a cross-channel passenger and goods ferry transport service. P&O Stena Line had already enjoyed a first exemption, short-term, in January 1999.
In December 2000, the joint venture and the parent companies, Peninsular and Oriental Steam Navigation and Stena Line Ltd, had called for the renewal of the exemption gained in 1999 in virtue of Article 81 § 3 of the EC Treaty. This allows the Commission to clear prima-face anti-competitive agreements and practices, for as much as they contribute towards improving the production or distribution of services, while reserving to the users a fair share of the profit that results from it. After an in-depth analysis and after consulation with third parties concerned, the Commission concluded the absence of any substantial modification of the market conditions, which would justify that P&O and Stena Line be forced to dissolve their alliance. The investigation did not provide elements proving the existence of parallel behaviour by P&O Stena Line and Eurotunnel, the main operators that provide the connection.
With regards to the generally higher level of prices practices, the investigation revealed that this development reflects the adapting of the market to new conditions faced by the cross-channel services sector is confronted: ending of duty-free sales, opening of the Eurotunnel services in 1995, rise in fuel prices and introduction of a flexible pricing system, which allows to adjust the price of a ticket in relation to demand (peak or low season).
As a result the Commission renewed the exemption requested by P&O Stena Line until 7 March 2007 (the joint venture requested it for until 2020), but it will closely monitor the development of the market over this period, in close cooperation with consumer organisations and the national competition authorities.