China’s MOFCOM Blocks P3 Alliance

On June 17, 2014, China's Ministry of Commerce (MOFCOM) issued a decision blocking the formation of a strategic alliance between three of the world's largest ocean container shipping companies, A.P. Møller - Maersk A/S, MSC Mediterranean Shipping Company S.A., and CMA CGM S.A. (the "P3 Alliance"). The proposed P3 Alliance would have allowed the three companies to consolidate their shipping fleets on Asia to Europe, Trans-Pacific and Trans-Atlantic routes. Authorities in the US and the EU did not oppose the transaction.¹ MOFCOM, however, decided that the P3 Alliance would have reduced competition in the ocean container shipping business between Asia and Europe. According to MOFCOM's decision, the P3 Alliance would have (i) significantly increased concentration in container shipping between Asia and Europe, thereby enabling the parties to exercise market power, (ii) increased entry barriers and (iii) adversely affected competitors. This is only the second time since