Advisory to a government agency concerning agreement among competing service providers

CCCS advised a government agency on a potential agreement among competing service providers to share their assets to serve different locations. The objective of this initiative was to improve operational efficiency and asset utilisation, which could raise productivity and reduce emissions. In response, CCCS advised that, as the industry was relatively concentrated, there may be potential competition concerns, such as market sharing, if the combined market share of the service providers in the agreement are high. The government agency was advised to ensure that only the assets were shared among the service providers in the agreement, that the service providers avoid joint marketing or selling, or any form of commercial and price agreement. Each of the service providers should continue to compete for customers at any location.