Public transport ticketing schemes block exemption: statutory review

The CMA undertook a statutory review of the public transport ticketing schemes block exemption which expired on 29 February 2016.

• From: Competition and Markets Authority
• Published: 10 February 2016
• Last updated: 16 September 2016 — See all updates

• Case type: Markets
• Case state: Closed
• Market sector: Transport
• Opened: 5 May 2015
• Closed: 16 September 2016

Case timetable

Date	Action
16 September 2016	Updated guidance published
April to May 2016	Consultation period
April 2016	Consultation on updated guidance
29 February 2016	Current block exemption expires
December 2015	Recommendations to the Secretary of State (BIS)
5 August to 16 September 2015	Consultation period
5 August 2015	Proposed recommendations published
May 2015	Start of review

Updated guidance

16 September 2016: Following consultation, the CMA has now published updated guidance on the the public transport ticketing schemes block exemption.

• Guidance on the public transport ticketing schemes block exemption (16.9.16)

BIS impact assessment for renewal of exemption

21 April 2016: The Department for Business, Innovation and Skills (BIS) has published its impact assessment of renewing the block exemption. It considers the costs and benefits of renewing the block exemption compared to allowing the exemption to lapse.

This impact assessment found that allowing the exemption to lapse risked incurring additional costs to transport providers and could lead to a reduction in investment and development of ticketing schemes, although the level of costs would be difficult to quantify. As a result the impact assessment recommended the renewal of the block exemption.

Consultation on updated guidance

13 April 2016: Following the renewal of the block exemption by the Secretary of State in February 2016, the CMA is consulting on updated guidance on the block exemption.

• Consultation on updated guidance (13.4.16)

Update - February 2016

10 February 2016: On 8 February 2016, the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) (Amendment) Order 2016 was published (SI 2016/126). The order amends the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 2001.

This order comes into force on 29 February 2016. The order makes certain amendments to the block exemption and extends the duration for 10 years. The CMA will consult on its updated guidance on the Public Transport Ticketing Schemes Block Exemption (OFT439) shortly after the order coming into force.

Final recommendations to the Secretary of State

10 December 2015: The CMA has published its final report and recommendations to the Secretary of State.

• Final report and recommendations to the Secretary of State (10.12.15)
• Press release: Passengers could benefit from extension of travelcard schemes (10.12.15)

Case information

• The public transport ticketing schemes block exemption automatically exempts certain types of ticketing agreements from Chapter I of the Competition Act 1998 (this is the UK law prohibiting anti-competitive agreements) insofar as they meet certain specified conditions. It allows for public transport operators to enter into agreements to offer passengers tickets that they can use on the services of 2 or more operators. This normally increases the mobility of passengers and makes travel more flexible.

• The public transport ticketing schemes block exemption is due to expire on 29 February 2016. The Competition and Markets Authority (CMA) is reviewing it in order to make a recommendation to the Secretary of State on whether the block exemption should continue (whether in the same or in a revised form) or be allowed to lapse, before the current instrument expires.

Responses to consultation

28 September 2015: We have received the following responses to our consultation:

• Greater Manchester Travelcards Ltd (GMTL) (1.10.15)
• Anonymous response (1.10.15)
• Association of Local Bus Company Managers
• Association of Train Operating Companies
• Association of Transport Coordinating Officers
• Bath and North East Somerset Council
• Centro / WMITA
• Confederation of Passenger Transport
• Department for Transport
• FirstGroup plc
• Go-Ahead Group
• Ipswich Buses Ltd
• Journey Solutions Partnership
• LGA Public Transport Consortium
• Nestrans
• National Express and c2c Rail
• Nexus, Tyne and Wear PTE
• Passenger Transport Executive Group
• Safeguard Coaches
• South East of Scotland Transport Partnership
• South West Trains
• Stagecoach
• Strathclyde Partnership for Transport
• Trainline.com Ltd
• Transport Focus
• Transport for Greater Manchester
• Transport Scotland
• TravelWatch NorthWest
• TravelWatch NorthWest Bus fares report 2014
• TravelWatch SouthWest
• Wellglade Group
• Welsh Government

Consultation on CMA proposals

5 August 2015: The CMA has published our proposed recommendations for consultation. We will consider responses to the consultation before making a final recommendation in December 2015.

• Public transport ticketing schemes block exemption review: CMA proposals (5.8.15)

• Press release: CMA consults on renewing public transport ticketing block exemption (5.8.15)

Contacts

Please send written representations about any competition issues to: general.enquiries@cma.gov.uk

Published 10 February 2016
Last updated 16 September 2016 + show all updates

1. 16 September 2016

   Updated guidance published.

2. 21 April 2016

   Update added.

3. 13 April 2016

   Consultation on updated guidance launched and timetable updated.

4. 10 February 2016

   Update added and timetable updated.