Unfair fare deals
Page 17
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• Fare fixing deals between bus operators and agreements not to compete on each other's routes could be outlawed following changes brought about by the 1985 Transport Act.
The Act ends various exemptions from competition legislation which the bus industry has enjoyed up until now. Competition law now applies to the bus industry in the same way that it applies to other industries in Great Britain.
A guidance note published by the Department of Transport explains the two main areas of competition law involved. One is the law on restrictive agreements, which may affect many bus operators. Agreements between bus operators under which two or more parties accept restrictions on their commercial freedom now have to be registered with the Office of Fair Trading.
The second change covers the law on monopolies. These can now be referred by the Director General of Fair Trading to the Monopolies and Mergers Commission for investigation. Until now only the Secretary of State for Trade and Industry could make such references. However, this change is only likely to affect larger bus operators.
A third area of competition legislation concerns anti-competitive practices. This already applies to the bus industry and is outlined in the guide. It may become more relevant after deregulation.
David Mitchell, Minister for Public Transport says: "The Transport Act 1985 brings competition into local bus services. Competition should broadly be fair. That is why we have made sure that the general law on competition applies to the bus industry in just the same way as it does to other industries in Great Britain."