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Trainline shares plunge after UK watchdog opens drip pricing probe
Trainline, the only listed firm on the Competition and Markets Authority’s investigation list, fell 14% after the regulator said it is targeting ticketing and other mandatory add-on fees.
The UK Competition and Markets Authority has opened investigations into several firms over alleged “drip pricing,” or failing to clearly present mandatory add-on charges during the purchase process. The probe includes Trainline, Virgin Atlantic and Red Driving School, with the watchdog framing the action as part of a consumer protection drive.
Trainline’s shares dropped 14% on Wednesday, making it the only listed company on the CMA’s investigation list. The move came after the regulator highlighted alleged pricing tactics that are not upfront about required extras.
The CMA said it is acting under powers created by the Digital Markets, Competition and Consumers Act of 2024, which gives the regulator “direct enforcement” authority. The article notes that eight cases were opened last November, and some driving-related firms and StubHub UK have already been fined.
The piece also points to a line from Trainline’s statement saying the company has engaged with the CMA over several months and is taking steps to improve how certain fees are presented. It adds that regular users of Trainline’s app may recognize end-of-booking fees that apply to about 30% of journeys, according to the article.