The European Commission has confirmed it is allowing just a one month consultation period on a draft Regulation revising the exemption that liner shipping consortia currently enjoy from the EC Treaty's ban on restrictive business practices.
The consortia block exemption Regulation 823/2000 currently allows shipping lines to enter into cooperation for the purpose of providing a joint service. The EC says the new draft Regulation proposes to continue to allow for such co-operation within a new legislative and economic environment.
Competition Commissioner Neelie Kroes said: "It is time to adjust the block exemption for liner shipping consortia to current market practices in the liner industry and to current antitrust law."
Although apparently now rushing through the consultation the Commission started reviewing the consortia block exemption Regulation back in 2007.
An EC statement says: “The proposed changes take into account the necessary amendments due to the repeal of the liner conference block exemption Regulation in 2006. They also aim at better reflecting the current market practice through a broader definition of a consortium and by aggregating, under certain circumstances, the market shares of inter-linked consortia. In order to align the consortia block exemption Regulation with the general EU competition rules it is proposed that only consortia with a market share below 30% should benefit from the exemption.”
This latest review of the liner shipping industry follows the repeal the exemption from EU competition rules for liner shipping conferences. The EC says: “The review of the consortia block exemption Regulation will complete the reform of the competition rules that apply to maritime transport services.”
The consortia block exemption Regulation 823/2000 currently allows shipping lines to enter into cooperation for the purpose of providing a joint service. The EC says the new draft Regulation proposes to continue to allow for such co-operation within a new legislative and economic environment.
Competition Commissioner Neelie Kroes said: "It is time to adjust the block exemption for liner shipping consortia to current market practices in the liner industry and to current antitrust law."
Although apparently now rushing through the consultation the Commission started reviewing the consortia block exemption Regulation back in 2007.
An EC statement says: “The proposed changes take into account the necessary amendments due to the repeal of the liner conference block exemption Regulation in 2006. They also aim at better reflecting the current market practice through a broader definition of a consortium and by aggregating, under certain circumstances, the market shares of inter-linked consortia. In order to align the consortia block exemption Regulation with the general EU competition rules it is proposed that only consortia with a market share below 30% should benefit from the exemption.”
This latest review of the liner shipping industry follows the repeal the exemption from EU competition rules for liner shipping conferences. The EC says: “The review of the consortia block exemption Regulation will complete the reform of the competition rules that apply to maritime transport services.”