The report notes that the current regulatory framework discourages healthy competition between operators. This is particularly evident in how sea routes are planned, how efficiently and reliably services are delivered, and, ultimately, in ticket prices. In addition to repeated fare increases, another consequence of this market structure is that providing continuous service to remote or hard-to-reach islands doesn’t always align with the profit-driven logic of the market’s dominant players.

The Commission has announced that it will now launch a full-scale sectoral inquiry.

In a statement issued on Wednesday, the Hellenic Competition Commission said that, given the vital importance of the Greek ferry system for the country’s economy and social cohesion, along with the market’s structure and recent ticket price trends, it decided on 15 April 2025 to initiate a sectoral inquiry under Article 40 of Law 3959/2011.

It stressed that ferry services are crucial not only to the economy but also to the territorial and social unity of Greece.

“Given the country’s unique geography, with its many islands, ferries are the primary mode of domestic transport for both passengers and goods. This makes them essential for connecting the islands to the mainland and to each other. Ferry transport also plays a role in international trade, especially through routes across the Adriatic. The quality and reliability of these services directly influence the economic, social, and demographic development of island regions.

As such, ferry services take on the character of a public utility – something that, for the sake of the public good, must be provided adequately, if not continuously. They are seen as a key pillar in promoting cohesion and sustainable development across Greece’s island areas.

At the same time, these services are operated by private companies, which must also remain financially viable. This dual role often creates tension, particularly due to the large number of small and remote islands and the highly seasonal nature of demand. Continuous service to low-demand destinations doesn’t always align with the commercial imperative of maximising profits.

The Commission’s initial investigation highlighted several key issues:

  1. Market Concentration: Despite the formal liberalisation of the ferry market since the phased lifting of cabotage restrictions in 2002, competition remains weak. Two companies now control 60% of the medium- and long-distance ferry fleet. Service quality—measured by fleet age, travel time, and island accessibility—remains limited, particularly outside major tourist routes. There’s little evidence of new entrants or increased competition.
  2. Regulatory Shortcomings: The current system of (nominally free) route scheduling allows operators wide discretion, which can lead to distortions in the market. This affects the overall planning of sea transport networks, the efficiency of service delivery, and ticket pricing.
  3. Public Service Contracts: Given the shortcomings of the liberalised system, public service contracts have become essential for ensuring coverage to less profitable routes. This suggests inefficiencies in the current model and increases the financial burden on the state. Public spending on these contracts has soared by 1,400% since market liberalisation—from €10 million in 2001 to €152 million in 2024.
  4. Network Structure: The ferry network has evolved into a “hub-and-spoke” system centred around the port of Piraeus. Since ferry services and port infrastructure are closely linked, long-standing deficiencies in port facilities—especially on the islands—are holding back both the supply and demand sides of the market and limiting the sector’s overall efficiency.
  5. Regulatory Instability: Constant restructuring and changes in the oversight of the ferry market have led to concerns about regulatory fragmentation. Overlapping responsibilities and conflicting mandates risk undermining coherent supervision and policy at the national level.

With its upcoming sectoral inquiry, the Hellenic Competition Commission aims to explore these preliminary findings in greater depth. The goal is to identify potential distortions and put forward recommendations to improve competition in the Greek ferry sector.”

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