Sea Malta sale not in EU Commission's remit

The European Commission has made clear it has no intention of getting involved in the sale of Sea Malta by the government to an Italian company.

The Commission was reacting to a call from Labour MEP Joseph Muscat to investigate the sale in view of EU competition regulations.

In a written parliamentary question submitted by the MEP, Mr Muscat said there was widespread concern in Malta that this sale (Sea Malta to Grimaldi Lines) will lead to a de facto monopoly and to reduced competition in the provision of an essential service.

Mr Muscat asked whether the Commission was following this case and asked for its comments in the light of existing competition regulations, including the merger regulation.

Replying to Mr Muscat's request, EU Competition Commissioner Nellie Kroes said the EU is not following the issue because it does not fall within its remit.

"Concentrations are only reviewed by the Commission if they meet the turnover thresholds established in Article One of the merger regulation. Otherwise, a proposed transaction does not have a community dimension and the Commission is not competent to review it," she said.

Ms Kroes said this sale had not been notified to the Commission. She added that "according to public information, the Maltese competition authority is currently analysing the transaction and the Commission is confident the Maltese authority will ensure that competition is not distorted as a result of this transaction".