Shipping giants face landmark cartel class action for overcharging UK motorists
The first follow-on cartel class action to hit a trial in the UK is kicking off today, over allegations that major shipping companies overcharged British consumers for car deliveries.
The class action was launched back in 2020 against five of the world’s biggest shipping companies, MOL, “K” Line, and NYK, WWL/EUKOR and CSAV, over allegations of overcharging UK consumers and businesses.
This legal action follows the European Commission’s ruling in February 2018 that those five shipping companies had violated European Union competition law and were made to pay fines of over €395m.
The claim alleges that over 17 million cars and vans bought in the UK are said to have been affected by a market sharing and price-fixing scheme run by international shipping firms.
Those affected are consumers and businesses who bought or leased new vehicles from many of the leading brands including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault between October 2006 and September 2015.
The case made headlines recently following a settlement reached with the fourth defendant, Kawasaki Kisen Kaisha and the sixth to eleventh defendants, Wallenius Wilhelmsen, for £38m.
Back in December 2023 it was also the first case where the Tribunal approved a competition class action settlement after the CSAV defendants settled for £1.5m.
The trial, which starts today, remains against two defendant shipping companies, MOL and NYK who are quoted by the claimants to represent 47.7 per cent of the cartel.
The claim against the remaining defendants is said by the claimants to be valued at around £100m.
Ex-Which? executive Mark McLaren is acting as the class representative in this case on behalf of law firm Scott+Scott, while Woodsford funds this case.
The two remaining defendant parties, MOL is being defended by Arnold & Porter, and Nippon Yusen Kabushiki Kaisha is being defended by Steptoe International.
The trial is scheduled to last for nine weeks at the Competition Appeal Tribunal.
Commenting on the case, lead partner at Scott+Scott, Belinda Hollway said: “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.