The Competition Authority imposes fines on bike-sharing schemes in Rome

The Italian Competition and Market Authority has imposed fines on the three operators of electric scooter and pedal-assisted bicycle hire services in Rome. According to the Competition Authority, Lime, Dott and Bird are alleged to have engaged in unfair commercial practices aimed at circumventing or delaying one of the obligations set out in their service contract with the City of Rome, namely the provision of free ride packages to annual public transport season ticket holders. The fine, totalling 2.675 million euros, is substantial: 1.4 million euros for Lime (against revenues of 37 million), 525,000 euros for Dott (out of 14 million in revenues) and 750,000 euros for Bird (against 7.4 million in revenues). All three companies are alleged to have created bottlenecks in the processing of applicants’ documentation and in the issuing of free rides, with the aim of delaying or restricting their use. In addition, Bird is also accused of having arbitrarily deactivated certain accounts without providing any explanation or warning.

On reading the text of the measures, the alleged conduct does indeed appear serious, as the provision of free journeys to public transport season ticket holders is one of the elements of the service contract on the basis of which operators are authorised to operate within the capital. The operators have defended themselves by claiming that the volume of requests far exceeded expectations. This is not an unfounded argument but, as the Authority notes, the operators have made no serious attempt to resolve the problem. What is surprising, if anything, is that the case was opened on the basis of reports from users, whilst the Rome City Council does not appear to have played a particularly decisive role. Consumer protection falls within the remit of the Competition Authority, but compliance with contracts should also be enforced by the contracting authorities. It remains to be seen whether the decision will stand up to the inevitable appeals, during which the operators will have the opportunity to clarify their position.