International

The OFT received a complaint from the MP for the Isle of Wight - backed by 8,000 signatures - arguing that a lack of competition on cross-Solent ferry routes had resulted in fares that were too high and other adverse effects for consumers. As a result of that complaint, the OFT launched a market study into the cross-Solent ferry market to decide whether to initiate a two-year in-depth investigation into the market by the Competition Commission.

Although Wightlink accounts for around 70 per cent of all cross-Solent traffic and the OFT considered that features of the market adversely affected competition we persuaded the OFT that no in-depth investigation was warranted. Our pro-active approach enabled us to allay potential concerns about pricing and service levels as a result of which the OFT decided not to refer the market to the Competition Commission (compared to airports and local buses, two other recent transport-related cases which have led to market investigations).