New York's Attorney General Letitia James has concluded an investigation into the business practices of bus tour operators Big Bus Tours Limited and Twin America, LLC. The probe uncovered unlawful agreements between the two companies designed to limit competition in the city’s hop-on/hop-off bus tour market. As a consequence, both companies have been penalized, jointly paying over $2.5 million and agreeing to cease their anti-competitive agreements.
The investigation by the Office of the Attorney General revealed that Big Bus and Twin America collaborated in a manner that allowed them to benefit at the expense of fair competition. Twin America withdrew its own bus services in return for favorable commissions on ticket sales for Big Bus, while Big Bus facilitated the use of Twin America's buses to maintain an illusion of competition and preserve Twin America's bus stop permits.
Attorney General James stressed the importance of competition, stating, “Healthy competition among bus tour companies helps ensure that the millions of people who visit New York City every year get a high-quality experience.” She accused the two companies of collusion, which curtailed service options for tourists.
Under the terms agreed with the Attorney General’s office, Big Bus will pay $2 million, while Twin America is liable for $500,000 plus a portion of any sale proceeds from its stock or assets, not surpassing $900,000. They are also prohibited from entering into any future anti-competitive agreements and must report any future acquisitions in the sector to the Attorney General.
This case is part of a series of actions undertaken by Attorney General James to combat anti-competitive behavior. Her office had earlier successes, including actions against a ski resort owner and the NCAA, and involvement in a lawsuit against Live Nation and Ticketmaster for monopolizing live music.
The case was managed by Assistant Attorneys General James Yoon and Michael D. Schwartz, under the leadership of Bureau Chief Elinor R. Hoffmann and other senior officials within the Antitrust Bureau of the Division of Economic Justice.