Charon charges exaggerated prices, abusing its dominant position in passenger car transport on the Strait of Messina. And the Antitrust sanctions it with almost 4 million. This is the outcome of the investigation launched by the Market and Competition Authority which imposed a fine of over 3,7 million on Caronte & Tourist, on the eve of a summer season which promises to recover compared to the recent past. According to the Antitrust, in fact, Caronte "has exploited its market power to apply prices that are unjustifiably burdensome for consumers".
Strait of Messina and Charon: how the sanction was decided
The overburden analysis was performed by applying a two-stage test: the preliminary investigation ascertained that the rates applied by C&T to passengers with motor vehicles are disproportionate to the costs incurred (excessiveness) and this disproportion is unreasonable compared to the economic value of the service rendered (iniquity). Various tests were used to evaluate excessiveness and all of them provided unambiguous results: there is a significant disproportion between revenues and C&T costs in the offer of passenger car ferry services.
Prices were also found to be unfair, i.e. unreasonably disproportionate to comparison with benchmarking international. In fact, C&T charges much higher rates than operators active on comparable routes, which however offer decidedly more advanced services. The difference in price compared to the benchmarking it is therefore not justified by the quality level of the service offered: the C&T fleet is characterized by a very high average age (27 years) and the ferry service is considered poor by the majority of users.
Press release from the Agcm, 12 April 2022
According to the Authority, the excessively high prices charged by the operator are not only unjustified in relation to the service offered - compared to similar services provided by other international operators - but the violation of the competition rules is particularly relevant if some further factors are considered: there geographic location, or the Strait of Messina; The economic power of Charon & Tourist; there type of service provided "which is essential for about 10 million people who every year - usually or only in the summer - have to cross the Strait of Messina with their own vehicle".
For the comparison of the service rendered by other operators, the Authority was based on the Roi (Return on investment) of 14 profitable companies in the sector. And exactly: Blueferries, Medmar, MOBY (excluding CIN/Toremar) 3 , Grimaldi Euromed, SNAV, Scandilines (Denmark), Destination Gotland (Ferries, Sweden), Tallink Grupp (Finland), DFDS (Ferries, Denmark), Irish Ferries division (Ireland), TESO (Netherlands), Sealink (Australia), Fjord Line (Norway) and Wightlink (UK).
ALSO READ: The methodology used for excessiveness testing
The decision was reached after an in-depth investigation launched on 28 July 2020 during which both the company involved in the investigation and the consumer associations operating in the area were heard.
To learn more: Antitrust resolution
