Stena's Dublin ferry plan blocked

Plans by ferry operator Stena to take over the Liverpool-Dublin route from P&O were blocked today by the British Competition Commission.

An inquiry by the Commission found that the transfer would have resulted in a “substantial lessening” of competition, with the number of companies operating the central Irish Sea corridor reduced from four to three.

It said it was concerned that Stena’s enhanced market power would give it scope to increase prices to some customers, mainly freight firms.

Professor Paul Geroski, chairman of the inquiry panel, said: “We looked closely at possible ways of remedying the expected substantial lessening of competition on the central corridor of the Irish Sea but concluded that the only effective measure was to block the transfer.”

The decision came after an extensive inquiry, involving a number of hearings with both Stena and P&O and 17 hearings with other interested parties.

Stena operated four routes across the Irish Sea at the time of the May agreement with P&O to take over five ferries and operate the Liverpool-Dublin and Fleetwood-Larne routes.

The Commission found that the latter route – covering the northern corridor - was not expected to have a material impact on competition. Stena has four weeks to lodge an appeal with the Competition Appeal Tribunal.