South Korea’s Supreme Court Upholds FTC Fines in Major Shipping Antitrust Case

South Korea’s Supreme Court has upheld antitrust penalties imposed by the country’s Fair Trade Commission (FTC) against 23 shipping companies, reinforcing regulatory efforts to crack down on rate-fixing in the maritime transport sector.

According to JOC, the Supreme Court’s unanimous decision reversed earlier high court rulings that had favored several shipping lines, including Evergreen Marine and Cosco Shipping, by setting aside the FTC’s 2022 fines. The ruling reinstates penalties that were originally set at approximately $81 million, though currency changes have since lowered the figure to around $67 million.

The long-standing case centers on allegations of collusion among carriers operating on routes between South Korea and Southeast Asia. The FTC concluded that these companies coordinated freight rates over a span of years, undermining competition and violating South Korea’s fair trade laws. Per Reuters, the decision marks a major win for the FTC, which has pursued the matter for years amid strong opposition from the shipping industry.

Read more: South Korea’s KFTC Faces Backlash as Court Nullifies Punitive Measures

In a detailed nine-page judgment, the five-judge panel unanimously found that the lower court had erred in overturning the sanctions, and reinstated fines on Evergreen, Cosco, and at least five other carriers. The companies had argued that their rate-setting practices were legal under maritime agreements and industry norms, but the Supreme Court found that such arrangements did not exempt them from antitrust scrutiny.

Per JOC, the court’s ruling is expected to have significant implications for regulatory oversight in the global shipping sector, particularly in Asia where similar cases may emerge.

Source: JOC