Shipping Giants Face Landmark Cartel Class Action Overcharging UK Motorists.
The inaugural follow-on cartel class action trial in the United Kingdom commences today, centering on allegations that prominent shipping companies have imposed excessive charges on British consumers for vehicle deliveries. This class action was initiated in 2020 against five of the largest shipping firms globally: MOL, “K” Line, NYK, WWL/EUKOR, and CSAV, based on claims of overpricing for UK consumers and businesses.
This legal proceeding is a consequence of the European Commission's determination in February 2018, which found that these five shipping companies had breached European Union competition regulations, resulting in fines exceeding €395 million. The claim asserts that more than 17 million cars and vans purchased in the UK were impacted by a scheme of market sharing and price-fixing orchestrated by these international shipping entities.
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Affected parties include consumers and businesses that acquired or leased new vehicles from several leading manufacturers, such as Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen, and Renault, during the period from October 2006 to September 2015. The case garnered significant attention recently due to a settlement reached with the fourth defendant, Kawasaki Kisen Kaisha, and the sixth to eleventh defendants, Wallenius Wilhelmsen, amounting to £38 million. In December 2023, this case also marked the first instance in which the Tribunal sanctioned a competition class action settlement, following a £1.5 million agreement with the CSAV defendants.
Belinda Hollway, the lead partner at Scott+Scott, provided her insights regarding the case. “This trial marks a very significant milestone in the case and is the culmination of five years of hard work and dedication.”
“We are encouraged by the Tribunal’s approval of three settlement agreements already in this case, which demonstrates the power of the UK opt out regime to secure compensation for class members. We are confident that the trial will expose how the cartel harmed UK businesses and consumers, and that the Tribunal will award meaningful compensation for that harm,” she added.
This landmark class action trial against major shipping companies underscores the increasing accountability for anti-competitive practices. With settlements already reached and more expected, affected UK consumers and businesses may receive significant compensation, setting a precedent for future cartel-related lawsuits and emphasizing the importance of consumer protection in competitive markets.
