TRAVEL TICKETS FOR SALE AT POST OFFICES (Advisory opinion)
PRESS RELEASE
The Italian Competition Authority submitted to Parliament, the Prime Minister, the Ministry of Postal and Telecommunications Services and the Ministry of the Department for the Public Function and Regional Affairs, an advisory opinion dealing distortions on competition which could derive from Section 46, subsection 1, of the draft bill on measures for the state finance stabilization, currently examined by Parliament. Such a draft bill provided for post offices to be authorized to sale travel tickets (rail and air tickets), starting from January 1st, 1998.
The Authority felt that extending the range of services supplied by the Ente Poste Italiane (Italian Postal Service) could bring about a more efficient exploitation of company's investments and achieve range economies.
Also, customers could benefit, at least in the short term, from the entry of the Ente Poste into the market of distribution and sale of travel tickets, in virtue of the company's widespread office network all over the national territory.
However, the Authority deemed that customers interest could not be pursued through a “selective” liberalization, by removing the existing obligations to the advantage of a sole operator. Such a provision should be appraised within the regulation for the sale of travel tickets. In Italy, a binding legislation has controlled so far both the opportunity of entry and the operations of all the companies working in the market concerned (except for few transport companies self-producing their own service and selling their tickets).
In the Authority's opinion, the Ente Poste Italiane should be permitted to sell travel tickets on condition that rules on market access and companies operations would be non-discriminatory. Therefore other operators should be discharged from current obligations. Companies intending to market travel tickets, without being a full service travel agency, should not be subject to all requirements under the legislation in force. New rules should set general requirements in order to carry out the sole distribution and sale of travel tickets.
As far as regulation on travel agencies is concerned, on June 1995 the Authority submitted to the Prime Minister and the Presidents of Italian Regions an advisory opinion dealing with legislative ties. It was said that these obligations, requiring at regional level the compatibility with either territorial development plans or discretionary assessments in order to grant licence to open or move travel agencies, were designed to limit offer unjustifiably and harm consumers.
The Authority pointed out the need to reformulate regional laws, which provide for sharing licences to supply travel agencies' services.
In November 1997, a new advisory opinion was submitted to the Prime Minister and the Presidents of Italian Regions. The Authority said that, despite that licences are free of legal ties, imposing on agencies a distinct licence to open or move branches as well as the obligation of a full-time technical director working at each travel agency, was another restriction of offer, which is subrogatory for the limit number of travel agencies.