In a statement published on its website rejecting the proposed P3 Network of Maersk Line, Mediterranean Shipping Co. and CMA CGM, the Chinese Ministry of Commerce, known as MOFCOM, said the proposed alliance would be anticompetitive and not supportive of the “social public interest.”

The head of the MOFCOM antitrust division said in a statement that the agency “is not opposed to enterprises advancing their market share based on their own competitiveness. However, for those companies that have already achieved a certain market share, who want to further strengthen their market impact, and to achieve a good market share position, then we need to carefully analyze the impact on the competitors.”

The antitrust head further stated, “MOFCOM has carefully studied the project, regarding its impact on market share, market control, and market entry as well as industry characteristics. It has concluded that after this consolidation the partners will form into a very close operation together, and their combined Asia-to-Europe container shipping service capacity will reach as high as 47 percent. And the consolidation of the market will also be increased as a result of this.”

“During the investigation, MOFCOM stated to the parties who proposed this idea that it might have the effect of excluding others and be anticompetitive. The parties have discussed several times how it would be possible to reduce the impact on competition. The parties that proposed this submitted several rounds of proposed improvements and solutions. After evaluation, MOFCOM thinks that the proposed improvements and solutions are lacking evidence that they are in compliance with the law,” the statement further said. “They can’t prove that the positive impact of this consolidation outweighs the negative impact. And they can’t prove that the proposal is compliant with social public interest. So according to China’s antitrust law, MOFCOM decide to ban this proposed carrier consolidation.”