News

Mærsk fined DKK 10 million in merger control case

The Danish Maritime and Commercial High Court has imposed a fine of DKK 10 million on A.P. Møller-Mærsk A/S for failing to notify a merger and for implementing the merger without approval from the competition authority. The violations concern the merger between Damco USA Inc – a subsidiary of A.P. Møller-Mærsk A/S – and Pilot Air Freight Holdings LLC.

Deputy Director General of the Danish Competition and Consumer Authority, Tine Rønde, says:

Major mergers must be notified to and approved by the competition authority to ensure that they do not significantly impede effective competition. Merger control can only function effectively if companies notify mergers in a timely manner and refrain from implementing them before obtaining the competition authority’s clearance. Failure to do so constitute serious infringements of the rules.
Mærsk did the right thing by contacting us when the error was discovered, and we have had a good cooperation throughout the case. It is worth noting that the court’s judgment took these circumstances into account. Overall, the reasoning behind the calculation of the fine is made very clear in the judgment.

The Maritime and Commercial High Court has fined A.P. Møller-Mærsk A/S DKK 10 million for breaching the Danish merger control rules in connection with the acquisition of Pilot Air Freight Holdings LLC by Damco USA Inc in May 2022.

According to the court, Mærsk acted grossly negligent. However, there are mitigating circumstances justifying a reduction of the fine. These include:

  • that Maersk contacted the authority shortly after becoming aware of the obligation to notify.
  • that Maersk cooperated fully and in a loyal manner with the Danish Competition and Consumer Authority.
  • that Maersk had and continues to have a competition law compliance programme in place, which was followed, although an internal error occurred during the merger screening process.

Damco is a U.S.-based logistics company and an indirectly owned subsidiary of Maersk. The decision to acquire Pilot was a strategic decision made by Maersk.

The merger was notified to and approved by the U.S. competition authorities prior to implementation. However, the combined group turnover of Damco and Pilot also exceeded the Danish merger thresholds meaning that the merger should have been notified to and approved by the Danish Competition and Consumer Authority.

In August 2023, the Danish Competition and Consumer Authority found that Damco and Mærsk had infringed the merger control rules. Subsequently, the authority brought the case before the Danish Maritime and Commercial High Court for a determination of the fine.

Mærsk initially contacted the authority in June 2022 and disclosed that the merger, which had already been implemented, was subject to notification in Denmark. The merger was subsequently notified and approved without intervention, as the authority concluded that it did not significantly impede effective competition.

For further information

Contact Head of Communications at the Danish Competition and Consumer Authority, Hanne Arentoft, at +45 41 71 50 98.

Merger Notification

  • Mergers of a certain size may not be implemented prior to assessment and approval by the Danish Competition and Consumer Authority.
  • Merger control rules are in place to ensure that major mergers do not significantly impede effective competition, to the detriment of other businesses or consumers in the market.
  • A merger must be notified to the Danish Competition and Consumer Authority if the participating undertakings exceed the following turnover thresholds:
    • The undertakings involved have a combined annual turnover in Denmark of at least DKK 900 million, and at least two of the undertakings each have an annual turnover in Denmark of at least DKK 100 million; or
    • One of the undertakings has an annual turnover in Denmark of at least DKK 3.8 billion, and at least one of the other undertakings has an annual worldwide turnover of at least DKK 3.8 billion.
  • The Danish Competition and Consumer Authority may require notification of certain potentially anticompetitive mergers even if they fall below the standard thresholds.
  • Failure to comply with the rules may result in fines.