The Application Of The EC Common Rules On Competition To Cabotage, Including Island Cabotage

Abstract

This chapter sets the scene by placing cabotage services within the context of the development of the EC Maritime Transport Policy from 1986 to 1992. It briefly considers Council Regulation 3577/92 and the relevant European Court of Justice (ECJ) case law, and focuses on the EC competition rules (Articles 81 and 82 EC Treaty). The chapter then describes the likely impact of these rules on cabotage services generally, given that these rules now apply to this type of maritime transport service. It discusses island cabotage with particular focus on the tension between ensuring that a degree of competition exists in this market and acknowledging the public service function of these maritime transport services. Finally, it explains generally the application of the EC State aid rules to the grant of compensation when public service obligations are imposed. Keywords: Council Regulation 3577/92; EC competition rules; EC Maritime Transport Policy; EC State aid rules; European Court of Justice (ECJ) case law; island cabotage; maritime transport service