The National Commission on Markets and Competition (CNMC) has authorized in the second phase the economic concentration operation through which Balearia acquires certain assets of Naviera Armas in the Alboran Sea environment. This state approval does not have a definitive character, as it is subordinated to the strict compliance with a series of voluntary commitments provided by the purchasing company and additional conditions established ex officio by the regulatory body itself. The final resolution has been forwarded to the Ministry of Economy, Trade and Business, the department that will determine whether to forward the file to the Council of Ministers for subsequent evaluation under criteria of general public interest unrelated to strict market competition.
The detailed analysis of the transaction has determined that the acquisition has a direct impact on the regular maritime transport market of passengers, as well as on the rolling cargo traffic, specifically in the links connecting the south of the Iberian Peninsula with the autonomous city of Melilla and in the international line between Almería and Nador. Following a thorough investigation in the second evaluation period, the CNMC has determined that the initial commitments presented by Balearia were insufficient to mitigate all the competitive risks identified in the area of operations.
In the specific case of the connections between the Peninsula and Melilla, the exit of Naviera Armas from this geographical market triggers the establishment of a de facto monopoly regime in the segment of regular maritime transport of rolling cargo and passengers. Passenger traffic on this route is subject to compliance with Public Service Obligations (OSP). However, the supervising body has detected that without the application of corrective measures, the new market structure would generate incentives to reduce the frequencies of the less profitable routes and decrease the levels of service quality that currently exceed the minimum requirements of the state regulatory framework.
Similarly, the CNMC has pointed out the latent risk of a generalized increase in ticket prices, mainly during holiday seasons and high demand periods, phases of the year during which maximum prices decreed by Public Service Obligations do not come into effect. This risk of increased costs similarly affects the transport of goods and rolling cargo, a commercial activity that operates permanently outside the regulated regime of the OSP. The disappearance of one of the two historical operators in this maritime environment eliminates competitive pressure in future public bidding processes for the awarding of connectivity contracts for the autonomous city.
