EU trust busters raid major carriers looking for rigged markets

EUROPEAN antitrust investigators, together with each country's own competition authorities, have raided shipping lines to probe alleged price and capacity fixing practices that legally existed before October 2008.


"Unannounced inspections are a preliminary step into suspected anticompetitive practices," said a European Commission statement, adding that the commission's inspections "do not mean that the companies are guilty, nor does it prejudge the outcome of the investigation itself."


Hong Kong's Orient Overseas (International) Ltd (OOIL), Singapore's Neptune Orient Lines (NOL), Taiwan's Evergreen Marine and South Korea's Hanjin Shipping said that they all were under investigation.


The European Commission, which can fine companies up to 10 per cent of their global revenues for breaching the rules, did not identify the companies raided.


The Singapore firm, in which Singapore state investor Temasek Holdings holds a 66 per cent stake, said its container arm, APL, is in "compliance with the anti-competition regulations and is cooperating fully."


Evergreen Marine said European Commission inspectors visited its London office as part of an investigation into major container carriers. "Evergreen will continue to fully cooperate with the agents in their efforts," a company spokesman said.


In Seoul, Hanjin Shipping said its Hamburg office had been inspected by EU officials and added that it would also fully cooperate with the investigation.


Hapag-Lloyd and CMA CGM have confirmed they too were raided. Maersk also said EU officials made a surprise visit to Copenhagen headquarters.


Said Maersk legal chief Christian Kledal: "Our practices are in compliance with EU competition legislation, and we fully cooperate with the commission to investigate the matter thoroughly. We have implemented our compliance programme to ensure that employees are aware of legislation and adhere to it."


Hamburg-based Hapag-Lloyd issued a statement: "The EU Commission is currently carrying out investigations with European shipping lines to see whether there have been violations of EU competition law since the abolition of the liner shipping conferences [October 2008]. We are convinced that we are in compliance."


Marseilles' CMA CGM also confirmed that EU officials visited its headquarters and said it was fully cooperating with the inquiry.


Said the commission statement: "There is no legal deadline to complete inquiries into anticompetitive conduct. Duration depends on the complexity of each case, the extent to which the undertakings concerned cooperate with the commission and the exercise of the rights of defence,"
(Source:http://www.schednet.com)