Friday, 04 July 2014 08:54

Eurotunnel told to sell ferry arm

318 Eurotunnel1 318 Eurotunnel2

In the UK, an unusual case involving cross-Channel ferry traffic has been underway for some time and has resulted in rail operator Eurotunnel has been banned by the country’s Competition and Marketing Authority (CMA) from operating a ferry service known as MyFerryLink which it started up two years ago. The case involves three ferries previously owned by SeaFrance, a company that was bankrupted following several suspensions of service due to strikes by French unions. In explaining its judgment, the CMA concluded that Eurotunnel's purchase of the ferries meant it had more than 50% of the cross channel business and therefore too much market power. CMA has given Eurotunnel six months to wrap up the service and seek a buyer for the ferries which together with shoreside support and management staff employ 600 people. Eurotunnel has advised that it will appeal the judgment for a second time.

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