The European Commission (EC) has launched a probe into the affairs of 14 container shipping lines, suspecting violations of antitrust law through illicit signals to each other through public announcements of general rate increases (GRIs).
"Since 2009, these companies have been making regular public announcements of price increase intentions through press releases on their websites and in the specialised trade press," said the EC, reported London's Financial Times.
Maersk Line said it had "no reason to believe" it had broken EU competition law. It took note of the commission decision to launch a formal investigation.
"No formal letter from the commission on the matter has been received yet but we have been informed that we will be part of the investigations," said Maersk.
France's CMA CGM confirmed that it was one of 14 companies under investigation and insisted it was "fully compliant with EU law".
The EC said the practice "may allow the companies to signal future price intentions to each other and may harm competition and customers by raising prices on the market for container liner shipping transport services on routes to and from Europe".
The launch of the probe comes more than two years after the commission raided at least four of the world's biggest container shipping lines, indicating that one of the most serious regulatory inquiries ever launched into the industry is gathering momentum.
At the time of the Brussels raids in 2011, Denmark's Maersk Line, the world's biggest, said it was among the companies inspected.
Others included Germany's Hapag-Lloyd and Singapore's Neptune Orient Lines. Other companies also received visits, but the commission has not made clear which groups are targeted by its formal investigation.
The move by the industry to publicly announce planned price hikes, known as general rate increases, started after Brussels in 2008 banned the industry practice of fixing prices and capacity on routes.
The ban on open cartel shipping conferences on routes in and out of Europe hit at the same time as the global downturn, which left most of the industry unprofitable as it struggled with overcapacity and volatile rates.
The carriers regularly operate ships below cost and analysts point out that the situation is not improving because of price wars.
Said Drewry analyst Neil Dekker: "Irrespective of the general rate increase mechanism, the volatility in prices on the Asia to Europe trade does not appear to be linked to supply and demand fundamentals. Rather it is driven by the perennial battle between companies for market share."
Mr Dekker said that ever since Brussels banned the liner conference in 2008, the companies "have taken advice from their lawyers about what they can and can't do".
The commission can impose fines of up to 10 per cent of a group's global revenue. The opening of a formal probe paves the way to possible charges against groups that are suspected of breaking antitrust rules. The process has no deadline and typically runs for two years or more, said the FT.
"Since 2009, these companies have been making regular public announcements of price increase intentions through press releases on their websites and in the specialised trade press," said the EC, reported London's Financial Times.
Maersk Line said it had "no reason to believe" it had broken EU competition law. It took note of the commission decision to launch a formal investigation.
"No formal letter from the commission on the matter has been received yet but we have been informed that we will be part of the investigations," said Maersk.
France's CMA CGM confirmed that it was one of 14 companies under investigation and insisted it was "fully compliant with EU law".
The EC said the practice "may allow the companies to signal future price intentions to each other and may harm competition and customers by raising prices on the market for container liner shipping transport services on routes to and from Europe".
The launch of the probe comes more than two years after the commission raided at least four of the world's biggest container shipping lines, indicating that one of the most serious regulatory inquiries ever launched into the industry is gathering momentum.
At the time of the Brussels raids in 2011, Denmark's Maersk Line, the world's biggest, said it was among the companies inspected.
Others included Germany's Hapag-Lloyd and Singapore's Neptune Orient Lines. Other companies also received visits, but the commission has not made clear which groups are targeted by its formal investigation.
The move by the industry to publicly announce planned price hikes, known as general rate increases, started after Brussels in 2008 banned the industry practice of fixing prices and capacity on routes.
The ban on open cartel shipping conferences on routes in and out of Europe hit at the same time as the global downturn, which left most of the industry unprofitable as it struggled with overcapacity and volatile rates.
The carriers regularly operate ships below cost and analysts point out that the situation is not improving because of price wars.
Said Drewry analyst Neil Dekker: "Irrespective of the general rate increase mechanism, the volatility in prices on the Asia to Europe trade does not appear to be linked to supply and demand fundamentals. Rather it is driven by the perennial battle between companies for market share."
Mr Dekker said that ever since Brussels banned the liner conference in 2008, the companies "have taken advice from their lawyers about what they can and can't do".
The commission can impose fines of up to 10 per cent of a group's global revenue. The opening of a formal probe paves the way to possible charges against groups that are suspected of breaking antitrust rules. The process has no deadline and typically runs for two years or more, said the FT.