The Competition Market of Classification Societies

Two current events have caused the following synopsis and decision to research on this topic: The Competition Market of Classification Societies - A legal economic and comparative analysis of the market and liability of Classification Societies under Germ an, Norwegian and English Law. On the one hand the New York District Court of Appeals refused the appeal in Kingdom of Spain vs. American Bureau of Shipping (Prestige) in August 2012 confirming the lower court decision. On the other hand there are fusion tendencies for the first time since the foundation of Classifications Societies in 1760. It may change the market sustainable. In December 2012 the German Classification Society Germanischer Lloyd and its Norwegian Competitor Det Norske Veritas decided t o merge. Together they are going to run one fifth of the world shipping fleet with about 70.000 ships (data 2012). Even if antitrust law prohibits a merger, also these prohibition causes give reason for a legal economic study. With the affirmation of the European Commission in August 2013 and the anti-competition authorities in the US and South Korea in June, now only Chinas Ministry of Commerce can block a formal integration of both companies. Further the Italian Classification Society RINA GROUP started a Joint Venture with the more regional working Arabic Classification Society TASNEEF.In order to presume possible market failure and anticipate the future development of the Classification Market, firstly, it needs to be analysed which economic mechanism s effect Classification Societies and how the legal frame is structured. Based on these elaborated results, secondly, it shall be discovered, if and how a liability of Classification Societies should be formed to reduce possible erroneous trends (misallo cation) at the market. In this connection the focus will be given on German, Norwegian and English Law.