Brussels, 24/06/2014 (Agence Europe) - On Tuesday 24 June, the European Commission announced that it has extended by another five years - until April 2020 - the existing legal framework exempting, under certain conditions, liner shipping consortia from EU antitrust rules.
The maritime consortia block exemption regulation allows shipping lines with a combined market share of below 30% to enter into cooperation agreements to provide joint cargo transport services (so-called “consortia”). Such agreements usually allow liner shipping carriers to rationalise their activities and achieve economies of scale. If consortia face sufficient competition and are not used to fix prices or share the market, users of services provided by consortia are usually able to benefit from improvements in productivity and service quality.
The first consortia block exemption regulation was adopted in 1995 and prolonged several times. The latest market investigation, conducted in 2013, and a public consultation exercise in early 2014 showed that the main tenets of the Commission's approach are still valid. The extension of the exemption until April 2020 will provide legal certainty to liner shipping companies as regards the compatibility of their agreements with EU competition rules. The Commission says that the system works well and the current market circumstances justify its extension.
For consortia and alliances exceeding the market share threshold established in the block exemption regulation, it is the responsibility of the companies themselves to make sure that their agreements comply with Article 101 of the TFEU, and the Commission can decide to intervene if necessary. The Commission will continue to closely monitor market developments and the conduct of companies to ensure that markets remain open and competitive. In particular, in the context of the recent developments in the sector, the Commission will remain vigilant as regards any risks for competition that may arise from the implementation of maritime consortia and might intervene if necessary. (EL)