Denmark’s Maritime and Commercial High Court has fined global shipping giant Maersk 10 million Danish kroner (approximately $1.57 million) for failing to report a merger between its subsidiary Damco USA and U.S. logistics company Pilot Air Freight Holdings. The case highlights compliance blind spots in cross-border mergers and has sparked industry discussion about global antitrust coordination.

In May 2022, Maersk, through Damco USA, acquired Pilot Air Freight Holdings for $1.8 billion. Although the transaction had been approved by U.S. antitrust authorities, Maersk did not notify the Danish Competition and Consumer Authority (DCCA), nor did it wait for clearance from Danish regulators before proceeding with the merger.

Under Danish competition law, mergers must be reported to the DCCA and approved before completion if either party has an annual turnover in Denmark exceeding 3.8 billion DKK (approx. $550 million) or if their global turnover exceeds this threshold.

In this case, Damco’s annual turnover in Denmark reached the threshold, and Pilot’s global revenue also met the reporting requirement. After investigation, the DCCA concluded that Maersk had “collectively failed in its duty to disclose,” amounting to gross negligence.

The court initially considered a much higher fine but reduced it significantly due to mitigating circumstances. The ruling acknowledged that Maersk voluntarily contacted the DCCA in June 2022, just a month after the merger, and fully and sincerely cooperated throughout the investigation. The fact that the deal was later approved without intervention indicated limited competitive impact.

Maersk responded by calling the failure to report “a regrettable formal error,” emphasizing that remedial actions were taken immediately. In a company statement, Maersk said, “There was an oversight in the merger process, but we worked with authorities to ensure full compliance.”