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UK government to compensate Eurotunnel for market distortion

New Europe | March 04, 2019

The British government will pay Eurotunnel a €38 million settlement for violating the bloc’s competition law. The compensation comes after the UK came to an agreement with three ferry companies to provide extra services in the event of a no-deal Brexit. The contract awarded to Brittany Ferries (France), DFDS (Denmark), and Seaborne Freight (UK) would, in theory, allow them to provide additional cargo capacity and alternatives routes, easing the pressure on specific ports on both sides of the Channel. The UK’s Department of Transport was planning to look for capacity beyond Dover, particularly in Poole, Portsmouth, Plymouth, Immingham, and Felixstowe. However, the contract appeared scandalous when it was revealed that Seaborne Freight did not have its own vessels and that some of the ports in question were inadequate.

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