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Watchdog probes West Coast rail franchise award to First Group and Trenitalia

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RealTrains07

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Apologies if their is a thread on this already but nothing came up in various searches I did.

Yesterday it was announced that:

FirstGroup PLC (LON:FGP) and Trenitalia’s controversial joint award of the West Coast mainline railway franchise could be investigated due to competition concerns”

“On Friday the UK watchdog suggested that giving the contract to the pair may contravene antitrust rules”

“The Competition and Markets Authority (CMA) said it was considering whether the First-Trenitalia joint venture could result in a situation that “may result in a substantial lessening of competition”.

“To build its potential case, the CMA has invited industry organisations and interested parties to comment on the transaction”

“When the Department for Transport awarded the franchise last month it stoked the long-rumbling debate about Britain's railways being run by foreign state-owned firms”

“As well as running West Coast services out of London Euston from 8 December 2019 to 2026, DfT also announced that partnership will then run services on the new HS2 line through to March 2031”

You think their is any possibility of the CMA blocking First trenitalia from taking over in december or causing any delay/disruption??

https://www.proactiveinvestors.co.u...t-rail-partnership-may-be-blocked-903123.html

their are a couple of other articles that go into better detail. This was the most clearest one i could find?

I can link and post them if requested.
 
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DarloRich

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“The Competition and Markets Authority (CMA) said it was considering whether the First-Trenitalia joint venture could result in a situation that “may result in a substantial lessening of competition”.

How? They didn't think Stagecoach running the 3 main North to South franchise was a problem so why should this be an issue?
 

swt_passenger

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There’s usually been a competion and markets authority “story” a few weeks after every franchise announcement. Hardly anything ever results.
 

RealTrains07

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How? They didn't think Stagecoach running the 3 main North to South franchise was a problem so why should this be an issue?
Maybe its an issue referring to the reduction of competition after DofE resfused stagecoach virgin bid?
 

Darandio

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It's just noise, they like to hear the own voice now and again. Watch it disappear soon enough.
 

LNW-GW Joint

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Any CMA review process will take months at least, and won't stop the handover from Virgin in December.
The ongoing legal action about disqualification from franchise bidding by Virgin/Stagecoach and Arriva is more likely to have some effect.
The CMA can't possibly be complaining about "foreign state-owned firms" because that actually increases competition (and the alternative was virtually 100% foreign with MTR/Guangshen).
 

PR1Berske

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In the past (with Arriva I think) the ruling just meant some bus routes swapped operators.
 
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