New York's notoriously bustling tourism scene took a turn toward fair play as Attorney General Letitia James announced a significant legal win against two major bus tour operators in the city. According to a press release from the New York Attorney General's office, Big Bus Tours Limited and Twin America, LLC have been caught in a $2.5 million settlement for collusively stifling competition in the hop-on/hop-off bus tour market. The settlement, which ends illegal agreements that limited competition, sends a clear message to the industry: New York won't stand for businesses that conspire to undercut consumer choice and inflate prices.
As a sanctuary for millions of tourists each year, New York City relies on its various service providers to maintain a competitive edge to offer the best possible experiences. However, Big Bus and Twin America had entered into unlawful agreements since 2020 to stop competing. The arrangements enabled them to split commissions on ticket sales unfairly and restricted the quality and availability of bus tours for customers. They also created a false illusion of competition, as Twin America agreed to resell Big Bus tickets and receive a higher commission in return, which was meant to make it seem like they were still operating independently when in fact they were not. This kind of maneuver was designed to prevent other companies from being able to fairly compete, ultimately hurting consumers by potentially raising prices and limiting service quality.
The breakdown of the settlement has Big Bus paying out $2 million of the penalties while Twin America will contribute $500,000, with an additional contingency of 30 percent of proceeds from any potential sale of assets or stocks, capped at $900,000. As part of their agreement with the Office of the Attorney General, both companies are now prohibited from entering into any future anticompetitive agreements and are required to notify the OAG of any acquisitions of other bus tour operators in New York City. "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," said Attorney General James in the announcement.
New York Attorney General Letitia James has a track record of fighting unfair business practices. Her office has previously taken action against a ski resort owner for anti-competitive deals and ended no-poach agreements in the building services industry. The Antitrust Bureau, led by Elinor R. Hoffmann, continues to protect both businesses and consumers from shady tactics that hurt New Yorkers.
Assistant Attorneys General James Yoon and Michael D. Schwartz handled this case, alongside the leadership of the Antitrust Bureau, reinforcing the diligence that such enforcement requires to maintain a balanced economic landscape.
