THE proposed P3 mega alliance may run afoul of European regulators if the three members take advantage of antitrust immunity granted in other jurisdictions that permit cartel behaviour.
Dutch maritime competition lawyer Guus Braakman told the European Maritime Law Organisation in Singapore that P3 members, Maersk, CMA CGM and MSC, should review their membership in legal cartels.
While conferences, which set collective rates and capacity, were banned in Europe five years ago, they are permitted in Singapore and the US. There are also 65 conferences and quasi-conferences in the non-European trades.
The three shipping companies are members of the Transpacific Stabilisation Agreement, the Asia-West Africa Trade Agreement, and the Asia West Coast South America Freight Conference.
Mr Braakman warned that the big three, representing the biggest container shipping lines in the world, could be charged with tacit collusion should they operate as a legal cartel in one set of jurisdictions while supposedly shunning anti-competitive behaviour in Europe.
In the regulatory approval process, the three P3 members have been ordered to do a self-assessment to determine whether their scheme complies with EU competition rules.
"The obligation of self-assessment and the consequences of a wrong self-assessment in the form of absolute nullity of the agreement under EU law, and of claims for private damages under that law, may prove to be too much of a deterrent to continue," Mr Braakman said.
"I can well imagine that liner companies that are party to conference or discussion agreements that are allowed under foreign jurisdictions such as Singapore will reconsider their position and will eventually decide to withdraw from these agreements," he said.
Mr Braakman said the scale of the planned P3 alliance will make it harder for Brussels to conclude that there is no conflict of law between Europe and Singapore, reported Lloyd's List.
When weighing the legality of the P3 alliance, EU regulators may decide that explicit collusion permitted under Singapore law could affect the European container trades, Mr Braakman said.
A dozen global carriers, including the P3 members, are still under investigation by the European Commission, though little has been said about it since a series of raids in May 2011.
WORLD SHIPPING
28 October 2013 - 22:34
P3 membership in legal non-EU cartels said to imply illegal behaviour
THE proposed P3 mega alliance may run afoul of European regulators if the three members take advantage of antitrust immunity granted in other jurisdictions that permit cartel behaviour.
WORLD SHIPPING
28 October 2013 - 22:34
P3 membership in legal non-EU cartels said to imply illegal behaviour
This news 9367 hits received.
These news may also interest you