The European Union has decided to end a decades-long exemption for cargo shipping companies from EU rules against anti-competitive agreements. The reuters source.
- The EU is discontinuing the longstanding exemption for cargo shipping consortia from anti-competitive agreement rules, as it no longer promotes competition effectively.
- The European Commission found that the Consortia Block Exemption Regulation (CBER) brought limited cost savings and failed to support cooperation among smaller carriers.
- Cargo shippers will now be responsible for ensuring compliance with EU antitrust rules, reflecting a shift in the EU’s approach to exemptions and competition in the shipping industry.
Decades-Long Exemption Expires
The European Union has decided to terminate the Consortia Block Exemption Regulation (CBER) for cargo shipping companies, marking the end of a longstanding exemption from EU rules against anti-competitive agreements. This regulation, initially adopted in 2009, allowed liner shipping operators to collaborate, but its continued extension will no longer serve the purpose of boosting competition.
Challenges in Boosting Competition
The European Commission, acting as the competition enforcer within the EU, stated that the CBER’s scope was limited and did not deliver significant compliance cost savings for carriers. Furthermore, it failed to facilitate smaller carriers in cooperating and offering alternative services to compete with larger carriers.
Cargo Shippers Face New Responsibility
With the expiration of the exemption, cargo shippers wishing to collaborate will now be responsible for ensuring their activities comply with EU antitrust rules. This change reflects a shift in the EU’s approach to exemptions and a greater emphasis on fostering genuine competition within the shipping industry.
EU’s Evolving Stance on Competition
Over the years, the EU competition watchdog has allowed exemptions in certain sectors to promote competition. This decision highlights the evolving approach to anti-competitive agreements and emphasizes the importance of genuine competition in the European cargo shipping industry.
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Source-reuters
