– This is helping to destroy the competition that should work for the best for consumers, says department director Gjermund Nese in the Competition Authority. On Saturday, Dagsrevyen broadcast an interview with CEO Anko van der Werff at the airline SAS. He answered questions about the rising costs and what will happen to the price of plane tickets in the future. The Norwegian Competition Authority believes that van der Werff should have answered “I cannot comment on that for competitive reasons” to news’s question. Instead, the chief executive answered the following when he was asked whether the days of very cheap plane tickets are over: – But yes, the ultra-discounted tickets, I think we as an industry have to move away from that. Do you think the competitors are tempted to raise the prices Law professor Erling Hjelmeng at the University of Oslo explains that the competition for airline customers should work in such a way that the airlines have no idea what the competitors can come up with. – It is precisely the fear of surprising moves from competitors that means that you keep the prices down yourself, he says to news. Law professor Erling Hjelmeng has competition law as a specialist field at the University of Oslo. Photo: Hallvard Norum / news The SAS boss has now removed some of the tension in the battle for customers, the inspectorate believes. – When this type of statement is made, it indicates something about future prices for what is a central player in the market. When the competitors hear this, it makes them more confident in what SAS will do in the future. Then they may be tempted to raise prices more than they would otherwise do, says Nese. – Isn’t it obvious with the jet fuel prices we are seeing, and also wages that are rising sharply, that cheap tickets will be harder to sell in the future? – There can be many reasons why the companies choose to change the prices. Our point is that they should keep the plans they have around this to themselves. This is not information that should flow between competitors, Nese replies. CRITICIZES SAS TOP MANAGER: Department director Gjermund Nese in the Competition Authority has previously also criticized other industries for talking about future prices in the media. Photo: The Competition Authority SAS is happy to have a chat with the authority. Press chief at SAS, Tonje Sund, believes that van der Werff’s statement has been taken out of context and that the debate is therefore contrived. Press manager at SAS, Tonje Sund. – Van der Werff’s statement reflects that there are examples of flight prices in the industry that are not sustainable either in an economic or an environmental sense. The industry is international and the comment is not aimed at any specific market or player. It is a general assessment of the development in aviation, she writes in an e-mail, and also adds: – We would like to have a chat directly with the Norwegian Competition Authority, but we would prefer to avoid it via the media as we see that it will quickly become the subject of misunderstandings, she says. – Very dark gray area Hjelmeng says that he played the statement 20 times to make sure he heard correctly. – So he is talking about that “we as an Industry” – the entire industry – should move away from these ultra-discounted tickets. If it is followed up by the others in the industry, then you are in a very dark gray area around the cartel prohibition in the Competition Act, says the law professor. Law professor Erling Hjelmeng has competition law as a specialist field at the University of Oslo. Photo: Hallvard Norum / news Only if other actors follow up on the “invitation”, is there a breach of section 10 of the Competition Act, according to Hjelmeng. The rule clamps down on cooperation that can lead to a weakening of competition. A statement in the media that the competitors follow up on may be enough, according to Hjelmeng, who also refers to a decision by the European Commission from 2016 which cracked down on this. – If this is something other companies went out in the media and confirmed, that they also want to move away from these ultra-discounted tickets, then you have just created the common understanding among competitors that you should settle for a higher price level, he says. Nese in the Competition Authority says that such statements are not necessarily illegal, but that in the extreme they may be in breach of the law and lead to heavy fines. – The fact that it is not necessarily illegal is not the same as that it is okay. Now the companies must show respect for their customers, and rather help to limit the price increase instead of pouring petrol on the fire, which can quickly be the case with this type of statement.
ttn-69
– Participating in destroying the competition – news Norway – Overview of news from different parts of the country
