Eurotunnel will have to stop operating ferry services at the port of Dover, after the Competition Commission decided that its acquisition of three ferries and other assets from the former ferry operator, SeaFrance, could mean higher prices for cross-Channel passengers and freight customers.

In its final report published today, the commission has concluded that by adding ferry services to its existing Channel Tunnel business, Eurotunnel would increase its market share to over half and prices would rise. This confirms the CC’s provisional findings which were published in February.

The Competition Commission found that Eurotunnel decided to acquire the SeaFrance ferries in order to prevent ferry operator DFDS/LD from buying them.

Eurotunnel was concerned that if DFDS/LD obtained the assets cheaply, it could drive down prices for customers. The commission also found that one of the three current ferry operators on the Dover–Calais route was likely to leave in the short term, if no action was taken, resulting in Eurotunnel gaining an even larger share of the cross-Channel market.

Chairman of the Eurotunnel/SeaFrance Inquiry Group and Competition Commission Deputy Chairman, Alasdair Smith, said: "It cannot be good for competition when Eurotunnel, which already holds a market share of over 40 per cent, moves into the ferry business—particularly when it did so to stop a competitor from buying the ferries.

"Customers would lose out from Eurotunnel increasing its share even further and being able to raise prices on the tunnel services.

"In view of the current excess capacity on the Dover–Calais route, it also seems likely that one of the current ferry operators will exit in the short term if we don’t take action. Customers will be better off if there are two independent ferry companies competing with the tunnel than if one of the two is owned by Eurotunnel.

"By preventing Eurotunnel from operating ferry services out of Dover, we can protect the interests of customers. We did consider ordering Eurotunnel to sell the ferries but we were conscious of the uncertainties and possible delays affecting a sale.

"We can achieve the same outcome this way and it should be clear that we will not be diverted from ensuring the best result for customers."