The Competition Authority on Monday flagged a risk of “virtual monopoly” in refurbishing Paris airports, launching an “in-depth review” of a joint venture agreement between Groupe ADP and a British company.
ADP, which in particular manages the Roissy-Charles-de-Gaulle and Orly platforms, announced on October 25 that it had signed an agreement to operate with Select Service Partner (SSP) around a hundred catering points at these airports, through of a jointly owned company, Extime Alimentos y Bebidas París.
“It is expected that this entity will eventually group, for a period of approximately 11 years and for an estimated turnover of 1,800 million euros in the period, more than a hundred points of sale,” explained ADP.
However, according to the Autorité, the arguments of ADP and SSP “did not allow to dispel the serious doubts of harm to competition in these markets”, which led the agency to open “an in-depth examination procedure” that can last up to 65 business days, or even more if necessary, without prejudice to the final decision.
Price up, quality down
“The Autorité notes that the transaction will lead to Extime eventually managing almost all the catering areas of the two largest French airports, which is likely to give SSP, co-controller of the joint venture, a significant competitive advantage in the concession. of the national airport. catering market”, writes the competition police officer.
“Such a situation could allow SSP to be systematically the best in the tenders launched by ADP or by the other French airports, which entails a risk of exclusion of operators that compete with SSP in this market,” the agency continued in a press release. launching.
She says she fears that Extime will ultimately benefit from a “near monopoly of ADP’s catering services (…) which is likely to lead to an increase in prices, as well as the risk of a reduction in quality and diversity.” of the products offered to finish”. consumers”.
SSP defines itself as a “leading operator of catering points in transport and travel locations”, such as airports, train stations and motorway service stations. Among the franchises that it operates in 35 countries around the world are Burger King, Starbucks and Yo! Sushi. He also runs the famous Train Bleu, a great restaurant in the Gare de Lyon in Paris.
Contacted by AFP on Monday, Groupe ADP, majority-owned by the French state, did not immediately react.
Source: BFM TV
