Five major ferry lines in the Balearics fined.

The Commission of Fair Trading (CNC) has hit the five major ferry lines in the Balearics with fines totalling 54 million euros after finding them guilty of price fixing and agreeing conditions detrimental to users. The investigation began back in April 2010 when the then Councillor for Transport at the Consell, Albert Prats, made an official complaint to CNC about what he believed was unfair competition within the Balearics’ maritime routes.

The cases date back to 2001 and initially concern Baleària, Trasmediterrania, and Iscomar who between 2001 and 2010 divided up routes, ensuring a monopoly on most, therefore pushing up prices. In addition the investigation also concentrated on an agreement which continued from 1995, until 2011, with Baleària, Sercomisa (now Iscomar) and Mediterranean Pitiusa which, again, allowed them to split the maritime market up between them. Overall the fine is the highest ever levied to shipping lines in any one year, although in 2011 the Commission also fined Baleària and Trasmediterrania more than fourteen million euros for similar infractions on the line between Algeciras and Ceuta.

Trasmediterranea were the biggest perpetrators and, accordingly, received the largest fine, just over 36 million euros. Balearia came next with a fine of just under 16 million euros, whilst Trasmapi (1.15 million euros), Iscomar (495,826 euros) and Mediterranea Pitiusa (402,453) were also punished substantially.

The fines should have been 15 percent of the total volume of business affected, around 146 million. However Competition Legislation limits sanctions to a maximum of 10 percent of the total turnover of the company in the year previous to the resolution, a fact which restricted the fine in this case. It was also revealed that Baleària tried to get its fine reduced by agreeing to co-operate in the investigation, just four days after its central offices were raided by investigators. However whilst it tried to reduce the fine by 50 percent, in the end CNC only agreed to lower it by 15 percent claiming the cooperation received from Baleària had not been “continuous, full or swift.”

Information supplied by Bill Webb, Webbs International Transport, Mallorca.