The Spanish National Commission for Markets and Competition (CNMC) announced the start of the second phase of its review of the three transactions through which Balearia Maritime Transport seeks to gain exclusive control over specific assets belonging to the Armas Trasmediterránea group.
This transaction concerns regular maritime transport lines for passengers and goods between Southern Spain – the Alboran Sea (between northern Spain and Morocco and Algeria in the south), Southern Spain – the Strait of Gibraltar, and Spain – the Canary Islands. These are vital areas connecting the European continent with Morocco and North Africa.
Potential Monopoly Risks
The first phase of the analysis showed that the transaction could significantly increase market concentration, making Balearia the sole operator of several maritime lines. This could constitute an actual monopoly.
In the Alboran area, the transaction will enhance Balearia’s position as the main operator, with weak or nonexistent competitive pressure in most affected markets.
On the Spain-Canary Islands routes, the company may become the sole operator. While the company did not clarify its position regarding its competitor Fred. Olsen Express on the Huelva line after the introduction of the new ferry “Buenavista Express.”
Regarding the Strait of Gibraltar, another transaction is under analysis from DFDS in the same area. This could reduce the number of companies from four to three on the island-Tangier méd line if both transactions are approved.
Direct Impact on Morocco
The proposed transactions could lead to increased ticket prices, decreased service quality, and reduced frequency of trips on vital routes between Morocco and Southern Spain. Especially the routes to Melilla, Nador, and Al Hoceima.
This risk increases on routes that are not subject to “public service obligations” (OSP), where there are no price ceilings, but even some routes that do have OSP can be affected. This threatens competition for public tenders and reduces the options for available operators.
Balearia’s Commitments Insufficient
Balearia has made some commitments on the Spain-Canary Islands lines and has relinquished its license on the Nador-Almería line. However, the commission believes that these commitments are insufficient to ensure the protection of competition and require further analysis in the second phase.
Moving to the second phase does not mean approval of the transaction. The CNMC may request additional information from the companies involved. Affected or interested companies can provide feedback to protect their interests.
- Source: Puente de Mando / Spanish CNMC
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