CMA backs travel cards for further government exemption

Although the Competition and Markets Authority was concerned that agreements between transport operators can sometimes raise competition concerns, a consultation by the CMA found that if travellers are allowed to use integrated ticketing schemes such as through tickets or travelcards with different operators, they provide real benefits for passengers.

The CMA therefore recommended the Secretary of State for Business, Innovation and Skills renews the existing block exemption, which is due to expire on 29 February 2016, for an additional period of 10 years.

The Secretary of State will now consider the CMA’s recommendations, with any amendment order needed to have effect from the beginning of March 2016 at the latest.

"Passengers receive substantial benefits from multi-operator ticketing schemes and that is why we are recommending the block exemption is retained," said Roland Green, CMA senior policy director.

"We also want travellers to benefit from opportunities offered by smart ticketing, for example by enabling price-capped, pay-as-you-go tickets to be usable across different operators.

"We also think that extending the exemption to a 10-year period will be welcomed by the industry as it will provide greater legal certainty for their operations.

"The added clarity should make the block exemption easier to use, particularly for bus operators and local authorities, and we hope that this will encourage the development of multi-operator ticketing schemes."