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Maersk pays US$230,000 to settle Russian Anti-Monopoly Case
DENMARK's Maersk Line has paid approximately US$230,000 to the Federal Antimonopoly Service of the Russian Federation (FAS) after agreeing to settle a competition case regarding the Danish shipping company and other shipping lines' use of price announcements to the Russian market.
FAS accused Maersk Line, CMA CGM, Hyundai Merchant Marine, Orient Overseas Container Line and Evergreen Line of coordinating the setting of surcharges on trade lanes connecting Russia to the Far East and Southeast Asia via General Rates Increase postings in 2012 and 2013. The FAS had planned to impose a fine of about $12 million, The Maritime Executive of Fort Lauderdale, Florida, reported.
In the case FAS found no evidence of cartel behaviour, but under a unique provision in Russian Competition Law, FAS had initially concluded that Maersk Line and the other shipping lines' use of price announcements constituted a non-cartel concerted action.
The case opened in 2013 and concerned behaviour which is legal in other jurisdictions, says Maersk Line. This behaviour was previously investigated by the EU and not deemed an infringement of EU Competition Law.
"The case concerned a unique Russian provision that does not exist in other countries. This agreement shows the commitment of both parties to find a solution that creates clarity for the future. We look forward to continuing our engagements in Russia", said Camilla Jain Holtse, head of competition law at Maersk Line.
In the proposed agreement, Maersk Line commits to cease public price announcements for cargo to Russian ports. Instead, customers will receive price information for Russia specific corridors via email or a password-protected webpage.
Further, Maersk Line will sign up to voluntary industry guidelines for price announcements which the company says are aligned with the principles it voluntarily adopted when the EU Commission in July 2016 closed its competition case.
Negotiations between the FAS and the other container lines accused of belonging to the cartel are believed to be underway.
FAS accused Maersk Line, CMA CGM, Hyundai Merchant Marine, Orient Overseas Container Line and Evergreen Line of coordinating the setting of surcharges on trade lanes connecting Russia to the Far East and Southeast Asia via General Rates Increase postings in 2012 and 2013. The FAS had planned to impose a fine of about $12 million, The Maritime Executive of Fort Lauderdale, Florida, reported.
In the case FAS found no evidence of cartel behaviour, but under a unique provision in Russian Competition Law, FAS had initially concluded that Maersk Line and the other shipping lines' use of price announcements constituted a non-cartel concerted action.
The case opened in 2013 and concerned behaviour which is legal in other jurisdictions, says Maersk Line. This behaviour was previously investigated by the EU and not deemed an infringement of EU Competition Law.
"The case concerned a unique Russian provision that does not exist in other countries. This agreement shows the commitment of both parties to find a solution that creates clarity for the future. We look forward to continuing our engagements in Russia", said Camilla Jain Holtse, head of competition law at Maersk Line.
In the proposed agreement, Maersk Line commits to cease public price announcements for cargo to Russian ports. Instead, customers will receive price information for Russia specific corridors via email or a password-protected webpage.
Further, Maersk Line will sign up to voluntary industry guidelines for price announcements which the company says are aligned with the principles it voluntarily adopted when the EU Commission in July 2016 closed its competition case.
Negotiations between the FAS and the other container lines accused of belonging to the cartel are believed to be underway.
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