Entity denounces market concentration with the regulatory framework for interstate transportation
The Ambiotec association is urging Brazil's Ministry of Finance to revise new regulations that it claims hinder competition in the interstate passenger transport market.
The Brazilian association Ambiotec has voiced concerns about the recently introduced regulatory framework for interstate passenger transportation, suggesting that it creates barriers for new companies attempting to enter the market. They argue that the new legislation, particularly resolution 6.033/2023 by the National Land Transport Agency (ANTT), concentrates control over the sector in a few established companies, which could stifle competition and innovation.
Ambiotec's criticisms include the claim that the regulatory framework was approved without a proper competitive impact analysis or consideration of its regulatory outcomes. Key points of contention involve the prior definition of economic viability for markets, the use of indicators deemed incompatible with the authorization grant model, and setting a maximum number of grants based on market reserve criteria. These regulations purportedly disadvantage new entrants compared to established operators, limiting potential competition.
Additionally, Ambiotec points out that the regulatory framework includes specific entry windows and selection processes that apply solely to new operators, further entrenching the position of existing firms. This raises concerns about monopolistic tendencies within the transport sector and the long-term implications for consumers, who may face reduced choices and higher prices.