The National Commission on Markets and Competition (CNMC) has made the acquisition of assets from Naviera Armas Trasmediterránea by Baleària in the Canary Islands conditional upon a series of mandatory measures aimed at ensuring competition, protecting consumers, and maintaining the archipelago’s connectivity.
The regulator has established a framework of commitments that Baleària must adhere to for an initial period of three years, under direct supervision. Below are the main conditions.
- Dissolution of Agreements Limiting Competition. Baleària is required to dissolve its joint venture with Fred Olsen on the Huelva-Canarias route. Furthermore, the company will not be permitted to enter into similar arrangements with other shipping companies, thereby preventing alliances that could reduce real competition.
- Maintaining Frequencies and Capacity on Routes. The company must ensure the current service frequencies and transport capacity, especially on routes that exceed the requirements of Public Service Obligations, avoiding any cuts to its offerings.
- Investment in Fleet Modernisation. A key commitment involves investment. Baleària must allocate at least €25 million over three years to enhance the vessels acquired from Armas, aligning them with its operational standards.
- Improving Passenger Service Quality. The CNMC mandates improvements in user experience, which include enhanced onboard connectivity, optimisation of reservation and boarding systems, and a broader range of entertainment options. Continuous quality control through objective indicators is also required.
- Price Monitoring in the Market. To prevent price increases following the acquisition, Baleària must monitor applicable prices, particularly on routes without direct regulation, ensuring there are no unjustified hikes.
- Reactivation of Key Inter-island Routes. The shipping company is obligated to reinstate the route between Morro Jable and Las Palmas, which had previously been discontinued by Armas, thus strengthening internal connectivity within the archipelago.
- Employment Preservation and Local Ties. Among the conditions is a commitment to retain all staff associated with the acquired assets, as well as to maintain the Spanish flag on the vessels, ensuring job security and operational continuity.
- Advancing Sustainability and Energy Transition. Baleària must adapt its fleet to meet environmental standards, implementing sustainability and energy efficiency measures in line with developments in the maritime sector.
- Enhanced Compliance with Competition Regulations. The CNMC requires the company to implement specific internal compliance programmes, strengthening its corporate culture to prevent anti-competitive practices.
All these commitments will be monitored by the CNMC, which will require periodic information from Baleària to ensure compliance. Through this package of conditions, the regulator aims to ensure that a significant operation in the Canary Islands does not result in reduced competition, poorer services, or higher prices for users.
