Government suspends competition law to support Isle of Wight ferry routes

The government is temporarily suspending competition law to allow ferry operators on the Isle of Wight to work together and maintain a crucial lifeline between the island and the mainland during the COVID-19 outbreak.

The outbreak has significantly reduced demand for the day-to-day services provided by the three operators, Hovertravel, Wightlink and Red Funnel. Possible staff absences due to self-isolation and illness are also likely to pose a challenge to keeping these essential ferry services going.

The relaxation of rules under the Competition Act 1998 will help ferry operators to continue to run essential services despite reduced usage during the virus, maintaining a vital route for those who cannot work from home and those needing medical treatment.

It will also mean the operators can work together to allow for essential food, freight and medical supplies to be transported between the Isle of Wight and the mainland.

The operators will be able to discuss and agree routes and coordinate staff resourcing to ensure that ferries will still run regularly across the Solent, delivering a critical service on which Isle of Wight residents depend.

“By taking action today, we are helping ensure people, goods and services can continue to move freely between the Isle of Wight and the mainland,” says Transport Secretary, Grant Shapps.

“These routes remain fundamental to people’s everyday lives and this action underlines the government’s commitment to support transport operators providing vital services at this difficult time.”

Secondary legislation temporarily suspending elements of the Competition Act 1998 for Isle of Wight ferry operators was laid on Friday 27 March.

The Competition Act 1998 prohibits certain types of anti-competitive behaviour, including collusion and cartels. This covers agreements between businesses that prevent, restrict or distort competition. This can, for example, include price-fixing, sharing pricing information and sharing markets.

In the Act (paragraph 7 of schedule 3) there is a mechanism to allow the Secretary of State to exclude this prohibition – the one that covers agreements between businesses that prevent, restrict or distort competition – in exceptional and compelling reasons of public policy.