Ferry price fixation scandal in Greece: Competition Commission Investigation of the Oligopol

Greece promised the freedom of the ferry in 2002, but the imagination did not take long. The competition commission has caught two companies that play over 60% of the state and long-distance ferry routes of the state of Gatekeeper. Tourists and islanders? With the tariffs and schedules that are handed over by the duopol. If you try to reach one of the less famous islands, prepare for waiting and pay.

1.400% price boost and still no ferry for you

While Ferry conglomerate toast to achieve profits and thin competition, the essential ferry routes in Greece (Hello, National Lifeline) grew by 1,400%in just more than two decades. Of course, this money is supposed to combine remote islands with the rest of the country. How much of this does passengers actually achieve? Don't keep your breath while checking your empty wallet.

The miracles of Greek bureaucracy: regulation became wild

The probe is not just about the obvious price fixation. The entire ferry system is based on shaky rules and a port network that is still in the last century. Piraeus, the only real hub, serves as the middle of this creaking wheel, while old ports prove that “picturesque” does not mean “efficiently”. Frequent changes in the rule guess the industry, juggle the superiors and confuse passengers.

Where is the competition?

In theory, liberalization should bring selection, lower prices and better service. The reality in Greece? Not so much. The industry's open-to-to-do -cel policy for new providers is little more than a rumor. The same old names keep going boats, set tariffs and share routes to block real competitors – even if tourists fill the islands every summer.

The government tries to look busy

In view of the public frustration (and more tourists who are ready for revolt), the officials triggered the rules this week to prevent ferry providers from increasing prices for the sunny season. Will it help? Hardly if the structure of the industry remains the same. But it is a start or at least a press release.

Main problems – depressed

• Oligopol: Two companies hold most of the market.
• The price fixation of the ferry keeps the tariffs inflated.
• Smaller islands are cut off or see a limited service.
• Subventions replace real competition, but burn tax money.
• The passenger experience suffers in chunky ports and unclear regulation.
• No new players enter the scene and the public pays the price.

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