The trial in the collective action against a shipping cartel initiated in 2020 by Mark McLaren, the class representative for UK consumers and businesses that bought or leased new cars and vans from October 2006 to September 2015, commenced yesterday at the Competition Appeal Tribunal (CAT). The trial is anticipated to last nine weeks.

The trial targets the two remaining shipping companies involved in the cartel, MOL and NYK. The claim against these defendants is estimated to be approximately 100 million pounds. Mark McLaren has previously secured settlements amounting to 38.75 million with three other defendants—WWL/EUKOR, K-Line, and CSAV—which received approval from the CAT last month.

A market-sharing and price-fixing scheme orchestrated by the five international shipping companies impacted more than 17 million cars and vans purchased in the UK. The affected parties include consumers and businesses that purchased or leased new vehicles from prominent brands such as Ford, Volkswagen, Peugeot, BMW, Mercedes-Benz, Toyota, and Renault.

McLaren’s claim is based on the European Commission’s decision of 21 February 2018, which determined that the five shipping companies had breached EU competition law, leading to fines of 395 million euros.

For an extended period, the carriers operated as a cartel in the deep-sea transport market for new cars, trucks, and other large vehicles, including combine harvesters and tractors, across various routes connecting Europe with other continents.

The Commission’s investigation uncovered that the carriers’ sales managers engaged in anticompetitive practices at each other’s offices, as well as in bars, restaurants, and other social settings.

Specifically, they coordinated pricing strategies, allocated customers among themselves, and shared sensitive commercial information regarding pricing components, including charges and surcharges implemented to counterbalance fluctuations in currency and oil prices.

The carriers agreed to preserve the existing market conditions and honour each other’s established business on specific routes or with particular customers by either quoting excessively high prices or refraining from submitting bids in tenders issued by vehicle manufacturers.

The Commission’s inquiry was initiated following an immunity application from MOL. Throughout the investigation, the Commission collaborated with various competition authorities globally, including those in Australia, Canada, Japan, and the United States.