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OFT's Scots rules

28th September 1989
Page 18
Page 18, 28th September 1989 — OFT's Scots rules
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Which of the following most accurately describes the problem?

• The Office of Fair Trading has ruled that the conduct of Inverness-based Highland Scottish was "anti-competitive" towards minibus operator Inverness Traction.

The decision follows complaints by Inverness Traction about Highland's fares and duplication of its newly-introduced minibus services in the town.

Highland Scottish managing director Jim Moffat says he is "very disappointed "at the outcome of the OFT investigation. "In hindsight, we should probably have also complained formally to the OFT about Inverness Traction's actions, so that it could have been placed under the same scrutiny as ourselves," he says.

Moffat says that Highland entered into discussions with the OFT in an attempt to avoid the time-consuming and expensive process of a formal Monopolies and Mergers Commission investigation. It is understood that fares have now been raised, and plans are afoot to rationalise Highland's town services.

O Meanwhile, Strathtay Scottish has reported the Stagecoach-owned Magic Bus company to the OFT. Strathtay managing director Charlie Mullen says the decision to report Magic Bus to the OFT was taken "reluctantly".

Since June, Stagecoach's Magic Bus: reported to the OF by Strathtay.

Perth Panther services have been introduced in direct Con petition with Strathtay's longestablished local network, anc in August Stagecoach also moved on to Strathtay's Dundee-Carnoustie corridor with Magic Bus.

Strathtay has complained that Magic Bus is intending tA minimise or eliminate compet tion in the Perth and Dundee areas by operating a level of services and fares that canno be reasonably justified.