Cardiff's main bus company has been accused of "predatory behaviour" in an investigation by the Office of Fair Trading (OFT). It said the firm operated the service at a loss forcing 2Travel plc out of the local market.
The OFT stated it had provisionally found the company had engaged in predatory behaviour designed to eliminate a competitor. It said that between April 2004 and February 2005, the firm deliberately made a loss after another bus company 2Travel plc began to operate services.
The OFT found that the Cardiff Bus Company, used its dominant position to run services with revenues so far below costs that it was impossible for its competitor to remain in the market