The Danish competition authority, known as Konkurrence- og Forbrugerstyrelsen, has fined A.P. Møller-Mærsk A/S 10 million kroner for breaching merger control rules. This violation occurred when Mærsk acquired Pilot Air Freight Holdings LLC through its subsidiary, Damco USA Inc, in May 2022 without prior approval from the Danish authorities.

According to Tine Rønde, the Deputy Director of the authority, larger mergers must be reported and approved to ensure they do not significantly hinder competition. She emphasized that effective merger control relies on timely reporting by companies, and failure to do so constitutes a serious violation of the rules.

The court ruling highlighted that Mærsk exhibited a qualified degree of negligence, which was characterized as gross negligence. However, the court also acknowledged mitigating circumstances that justified a reduction in the fine. These included Mærsk's prompt communication with the authorities upon realizing the reporting obligation, full cooperation with the competition authority, and the existence of a compliance program that was generally followed, despite a single internal error during the transaction screening.

Damco, a logistics service provider, is a subsidiary of Mærsk, and the decision to acquire Pilot was a strategic move by the company. Although the merger was reported and approved by U.S. authorities prior to its execution, it also exceeded the thresholds requiring notification to the Danish competition authority.

In August 2023, the Danish competition authority concluded that both Damco and Mærsk had violated merger control regulations, leading to the case being brought before the court for the determination of the fine. Mærsk subsequently reported the merger to the Danish authority in June 2022, which was approved without intervention as it was deemed not to significantly hinder effective competition.