The Competition and Markets Authority said it intends to uphold an earlier ruling that will force Eurotunnel to halt its MyFerryLink services within six months.
Eurotunnel said the market has undergone vast changes since the first decision in 2012, with traffic across the Channel up 12 per cent.
However, the CMA said the bigger problem was a lack of competitors. “Passenger growth on the Dover-Calais route has been greater than originally anticipated, but at least two of the ferry operators are still making substantial losses,” said the watchdog.
“The provisional view of the CMA is that, if Eurotunnel is allowed to continue its ferry service from Dover, a competitor is likely to withdraw.”
Eurotunnel bought its three ships from Sea France, which collapsed in 2012. French authorities approved the sale at the time, on the condition that Eurotunnel does not sell the ships for at least five years.