IACS is breathing relief today that the EU is ending its two-year competition inquiry into class societies.

“All members are pleased that this investigation appears to be nearing a satisfactory conclusion,” said IACS chairman Oh Kong-gyun. “To the extent that the EC has shared its views with us, we would emphasise that our activities have always been consistent with all applicable laws and that there has not been any finding by the EC, provisional or otherwise, regarding any possible infringement of EC competition law by IACS.”

The EU said this morning that under Article 9 of a council resolution, it can close an enquiry once both sides strike an accord. It said the EU had expressed the preliminary view “that these decisions by IACS may have resulted in a restrictions of competition in ship classification services”.

These included concerns that IACS had failed to provide an adequate system for full access to and understanding of IACS technical standards for non-members. Polish class society PRS – rumoured to be the whistleblower – has publicly complained about those issues.

In January 2008, EU inspectors conducted searches at several IACS class societies in response to complaints alleging restrictive business practices. Shipping leaders expressed shock at the dawn raids.

Today the EU has set out its preliminary concerns of restrictive practises. IACS does not agree with them and has set out a list of proposed criteria for membership, which the EU published today. IACS proposals include the “adoption of non-discriminatory, qualitative membership criteria to be applied uniformly to applications for membership and continued membership of IACS”.

The EU has invited comments from shipping on the dispute over the next month at: http://ec.europa.eu/competition/antitrust/cases/index/by_nr_78.html#i39_416.

If this ''''market test'''', as termed by the EU, indicates that the IACS proposals are not perceived as restricting competition, the EU will adopt them. Otherwise, the EU could still impose a fine on the worldwide turnover of IACS.

Fairplay Shipping News, 10 June 2009