Spain stands as one of Europe’s largest economies where the bus transport system shows a mix of concessions and public oversight. In recent years, countries like Germany, France, Italy, and Portugal have pushed to liberalize intercity bus routes. Yet in Spain the government and autonomous communities have maintained a system of concessions that effectively grants exclusive rights to private operators on certain routes, a pattern that has persisted for decades and still shows signs of excessive regulation and inefficiency.
The National Markets and Competition Commission (CNMC) is pressing the executive and regional authorities to liberalize long and medium distance routes that exceed 100 kilometers, aligning Spain with recommendations from the European Commission. After more than three years of analysis, the CNMC released the study on intercity passenger transport by bus. It highlights several efficiency problems in the current network and outlines a path toward liberalization similar to other major EU members.
Under the present concession framework, the central government or autonomous communities award operating rights to private firms for bus services, often creating a de facto monopoly on certain corridors. This structure restricts competition and can deter more dynamic market responses to demand shifts and pricing pressures. The CNMC’s position favors opening medium and long haul services to competition while ensuring that public needs are protected through public service obligations (PSO). In this model, governments would subsidize unprofitable but socially essential routes and maintain the existing concession framework for those routes that still require reliable service levels.
The CNMC urges authorities to move quickly toward liberalization, underscoring that reform is timely given concessions that are close to expiry and the broader context of the forthcoming Sustainable Mobility Act. The department of Transport is actively laying the groundwork for a revision of the bus line concession map. Initial designs had sparked controversy when a proposed 72 percent reduction in state concessions was proposed but subsequently rejected by a majority in Congress.
European Example
CNMC notes that in countries where bus transport has been liberalized, competition tends to bring lower prices, more route choices, and a notable rise in passenger numbers. In Germany and France, average bus prices are around 23 percent lower than in Spain, while in Italy the differential runs about 36 percent. Since competition opened up, Germany’s intercity bus numbers have surged, nearly sixfold, while France has seen a fourfold increase and Italy about a 30 percent rise. Spain remains constrained by a framework that prevents operators from initiating routes outside the concession system, even when a clear commercial opportunity exists.
Experts quoted by CNMC describe the current Spanish concession regime as underperforming. A substantial portion of concessions has expired, and administrators frequently extend concession terms beyond the legal limit. The CNMC points out that more than half of the concessions have lapsed and that average extension durations can exceed 30 years in some regions. The legal maximum is ten years, with extensions allowed for up to five years when justified. The organization argues that renewing expired concessions is urgent and that extensions should be tightly regulated to reflect their exceptional character.
CNMC also stresses the need to improve tender criteria for ongoing concessions. The suggestion is to divide routes into lots to encourage participation by small and medium sized enterprises, avoid alliances that consolidate market power, and favor economic bid quality in the final scoring. It also recommends removing requirements tied to a fixed number of vehicles or personnel, which currently advantages incumbents who already operate the route.
The commission emphasizes that the concession system, while legal, is not inherently efficient. It argues that large operators enjoy strong protection that does not serve customers well. The analysis points to price disparities on routes within Spain and to exchanges with neighboring markets, such as the Spain to Paris connection, where costs can be higher in some cases than alternative cross-border links.
Looking ahead, CNMC suggests that the concession regime should remain a legitimate tool but be used more strategically. The focus should be on improving management, fairness, and market entry conditions rather than protecting entrenched incumbents. The overall message is clear: liberalization, well-structured tenders, and a robust PSO framework can drive better service, lower prices, and more options for travelers across Spain while maintaining essential social protections for vulnerable routes.