The Greek Competition Authority has announced the start of a sector inquiry into the ferry industry on April 15, 2025, recognizing the sector's importance for the Greek economy and social cohesion. This decision is based on Article 40 of Law 3959/2011, which empowers the authority to investigate market conditions.

The ferry industry is vital for Greece, serving as the primary means of transportation for goods and passengers to and from the islands. It plays a crucial role in maintaining territorial cohesion and contributes to export trade through international routes. The quality and accessibility of ferry services significantly impact the economic and social development of island regions, making it a public service that should be adequately provided for the public interest.

However, the ferry services are offered by private entities, which raises concerns about the economic viability of these operations. The inquiry highlights a conflict between the need for continuous service in remote areas and the profit-maximizing strategies of market players, especially given the seasonal demand fluctuations.

Preliminary findings from the inquiry indicate that the ferry market exhibits oligopolistic characteristics, with two major companies controlling 60% of the fleet for medium and long-distance routes. Despite the market's liberalization since 2002, service quality remains low, and there is little evidence of increased competition or new entrants.

The current regulatory framework allows for significant distortions and reduces competitive intensity based on the business strategies of ferry companies. The inquiry suggests that the existing free routeing rules may not adequately address the needs of island areas, leading to increased costs for the state budget, particularly as the cost of public service contracts has surged by 1400% since market liberalization.

The ferry network has developed into a star network centered around the port of Piraeus, which, combined with chronic deficiencies in port infrastructure, affects service delivery and demand satisfaction. The ongoing restructuring of market oversight bodies raises concerns about regulatory stability and coherence at the national level.

Through this sector inquiry, the Greek Competition Authority aims to investigate these preliminary observations and the overall competitive conditions in the ferry industry to identify distortions and propose measures to enhance competition.