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Highland Scottish in competition check

21st December 1989
Page 8
Page 8, 21st December 1989 — Highland Scottish in competition check
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Which of the following most accurately describes the problem?

• The Monopolies and Mergers Commission is to investigate the Highland Scottish bus company's commercial practices, after the Office of Fair Trading found the company guilty of anti-competitive behaviour against its rival, Inverness Traction (CM 28 September-4 October). But the OFT has backed down on claims in its report that Highland had run unregistered services and that funds from its

Scottish Bus Group parent had been used to subsidise Highland losses.

The MMC has been called in because Highland Scottish has not given sufficient assurances to the OFT that its practice of running loss-making routes in Inverness will stop. If the MMC rules that Highland Scottish's behaviour is anticompetitive and against the public interest, it could take action against the company.