The UK’s competition regulator is looking at whether to open an investigation into the government’s recent decision to award Abellio the East Midlands railway franchise.
Abellio, which is owned by the Dutch government, already operates five other franchises in the UK, including Scotrail and Greater Anglia services between Norwich and London.
READ: Stagecoach launches legal action over rail franchise disqualification
In a short announcement, the Competition and Markets Authority said it was assessing whether or not the award of another franchise may result in a “substantial lessening of competition”.
To help with its assessment, the CMA has invited comments from interested parties.
Should the regulator determine that the award of the franchise to Abellio might reduce competition, it is likely that it will open up a full investigation.
Stagecoach taking DfT to court
Abellio was awarded the contract back in April, which would see it operate trains between London, Leicester, Nottingham and Sheffield for eight years, starting in August.
But the government’s decision was met with fury from other rail operators, including the current owner, Stagecoach Group plc (LON:SGC), which was disqualified from the bidding process after the Department for Transport raised concerns about its pension commitments.
Stagecoach has since taken the DfT to court over its “opaque decision making” and general handling of the process.