Friday, December 13, 2013

EU to Probe Pricing by Shipping Companies

Global marketing calls for joint pricing among firms in order to reduce competition from the rivals. The prices fixed should, however, be fair and legal to avoid customer exploitation. Container shipping companies took this initiate to fix their prices along global trade routes. The continuous increase in prices fixed by the company has forced the European Union's antitrust regulator to assess the legality of the collusion among shipping companies. The investigation is to be done on 14 companies, but the EU has not stated the specific companies to be investigated. In the case of collusion, steep fines will be imposed on the companies. The three companies, Maersk, MSC and CMA CGM earlier in the year announced a broad alliance to control over 40% of the total sea-cargo capacity along some of the world's busiest routes, a bid that has been criticized by small companies. The EU is debating whether to approve the deal pending collusion investigation.
All these undertakings are some of the strategies taken to achieve global marketing by Multinational corporations.

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