Competition authority lifts restrictions on Bristol bus operators

Obsolete competition undertakings that governed bus services in the Bristol area have been lifted by the Competition and Markets Authority (CMA).

They were imposed when the long defunct Badgerline and Midland Red West companies merged in 1989, when it was feared that the merged operator would disadvantage the former Avon County Council by using its market power to drive up the costs of tendered bus routes.

The undertakings required that when Badgerline deregistered a bus service and Avon awarded the contract for a replacement service to another operator, the company could not run any route that substantially duplicated the service.

It also undertook not to quote tender prices to Avon in excess of 120% of expected direct cost and revenue and to refund 50% of the excess of actual over estimated revenue.

Avon was abolished in 1996 and replaced by Bristol City Council, South Gloucestershire Council, Bath & North East Somerset Council and North Somerset Council.

The CMA found that neither any of the successor councils,  not any bus operator active in the area was aware of the undertakings and so concluded “there would be no benefit to competition in retaining the undertakings in their current form”.

It added: “We also conclude that the undertakings should not be varied or superseded.”

The CMA pointed out that both tendered services and First Group’s share of them had reduced substantially since 1989.