Cartel claims over car hire firms

SIX leading car hire companies are under investigation by the competition watchdog on suspicion of operating a cartel at railway stations and airports.

Europcar, Ada, Avis Budget, Citer, Hertz and Sixt are suspected of colluding to impose a surcharge on customers hiring cars at stations and to have received regular information on rivals’ commercial plans and customer numbers from airport management at a dozen airports, including Paris Charles-de-Gaulle and Orly.

This is the latest in a series of investigations by the Autorité de la Concurrence monopolies watchdog, which in March fined 11 dairy products companies €192m and earlier this month fined 21 companies in the poultry industry €15m. Meanwhile, telecoms giant Orange is being investigated over favouritism on landline installation.

Le Figaro revealed details of the so-far secret inquiry, which was uncovered when Europcar, which is launching a €475million funding bid on the French stock market, lodged a document with the financial markets watchdog Autorité des Marchés Financiers on its financial position.

This revealed that the company, Europe’s No1 car-hire company, had put aside €45m in case of a future fine by the monopolies watchdog – although the company firmly denies being involved in any wrong-doing. Avis Budget has also lodged a similar document.

Hertz has denied being involved in any “collusion in a rail station surcharge” while Sixt says the allegations are “false and defamatory”. Ada admitted it was being investigated, but only over the airport claims which it said amounted to getting information from passenger questionnaires.

The allegations date back to 2003-2008 for the airport claims and 2005-2008 for the railways and the financial watchdog notified the companies of its investigation in February – although first inquiries started in 2008.

* Hiring a car in France next month? After June 8 the UK DVLA says that paper counterpart licences will no longer be valid - however, car hire companies are operating different policies on how they will treat drivers. Find out more in The Connexion, on sale in large newsagents later this week, or buy a pdf copy online, click here to download for €3.50.
Photo: Martin Lewison/Flickr