CMA review
of liner shipping block exemption
The Competition
and Markets Authority is reviewing the retained EU Liner Shipping Consortia
Block Exemption Regulation (Commission Regulation 906/2009) (Shipping Block
Exemption).
The Competition
(Amendment etc.) (EU Exit) Regulations 2019 preserved the existing EU block
exemption regulations as retained law.
These regulations also allowed the Secretary of State to renew or
replace the retained EU block exemptions.
The UK’s review
of block exemptions can occur in parallel with the EU review or expiration of
the underlying block exemptions or it can occur independently.
The Shipping
Block Exemption provides an automatic exemption for agreements between liner
shipping companies allowing for joint services to be provided through
consortia. It does not allow liner
shipping companies to agree to fix prices, otherwise limit capacity or sales,
or allocate markets or customers.
The Shipping
Block Exemption is due to expire on 25 April 2024. Meanwhile the European
Commission has launched a review on whether the EU block exemption continues to
be fit for purpose.
In carrying out
its own review the CMA will consider whether the Shipping Block Exemption
serves the interests of UK businesses and consumers taking account of the
features of the UK market. Not least, this takes place against a background of
global supply chain disruptions.
The CMA is expected
to consult further on the UK Shipping Block Exemption in retained form in 2023.
Meanwhile the
CMA is undertaking reviews of a number of other EU block exemptions existing as
retained EU law in the UK. This includes a review of the retained Vertical
Block Exemption Regulation (November 2021) and the retained Horizontal Block
Exemption Regulations (June 2022). The CMA also consulted, in July 2022, on its
proposed recommendation on the retained Motor Vehicle Block Exemption
Regulation.
https://www.gov.uk/cma-cases/liner-shipping-consortia-block-exemption-regulation
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