Bus industry 'could be referred to the Competition Commission'

Date: 5/1/2010

The Office of Fair Trading (OFT) is to announce within the next couple of weeks whether it is to launch a full competition inquiry into the bus industry.

Should the OFT decide to go ahead with the inquiry, Britain's biggest transport companies fear investment into the industry could be deterred for as long as two years, according to the Daily Telegraph.

The decision follows the release of a report by the OFT in August, which stated limited competition between bus companies may be leading to higher prices for passengers.

However, Stagecoach finance director Martin Griffiths told the paper: "It shouldn't be referred, it's a nonsense. The deregulated bus market outside London is competitive and vibrant.

"But I'd be surprised if it wasn't referred because that's what regulators do."

A spokesperson for the OFT told the paper a decision on whether a referral to the Competition Commission is to be made will be announced shortly.