Finland's bus traffic has been opening up to competition more and more since an EU ruling in 2009. Now a group of Finnish transport firms is under suspicion of engaging in cartel behaviour by illegally restricting competition.
The Finnish Competition and Consumer Authority (FCCA) suspects that the 20-odd companies have, among other things, denied new entrepreneurs access to the business and to existing routes.
New entrepreneurs shunted aside
The Bus and Coach Association member companies have allegedly warned new entrepreneurs from driving on lucrative bus routes. The Matkahuolto travel service company has also been accused of shutting out newcomers from the ticket system, making serving passengers difficult.
The bus association confirms that an investigation is underway.
"The association is a litigant in this case as are companies involved in the union's administration," CEO Mika Mäkilä says.
According to Yle sources, about 20 of the union's 330 member companies are suspected, along with Matkahuolto.
Bus Association denies cartel
The FCCA's investigation is based on activities and statistics from 2008-2012, which is when the Finland gradually opened its bus services to competition with a new public transport law. The law is based on the European Commission which requires member states to keep their public transport open to competition.
The Bus and Coach Association denies having a cartel. It adds that companies working in the sector have had trouble interpreting legislation in the face of a market transition.
"This was a hard time for bus companies," says Mäkilä. "There's been a lot of uncertainty and I would turn by attention to the law and how it is put in practice."
Could a potential cartel have affected ticket prices?
"Bus traffic used to use a different regulatory system, very authority-driven and based on permits as well as price regulation," Mäkilä says.
Should the investigation lead to a conviction by the Market Court, the penalties could amount to some 10 percent of the turnover of the bus companies – representing a figure of some 10 million euros.
