A US Federal Court has granted Boats Group’s motion to dismiss an anti-trust lawsuit.
Brill Maritime had bought the case on behalf of itself and others similarly situated doing business as Export Yacht Sales, alleging that Boats Group holds an illegal monopoly in the US boat market.
The lawsuit alleged that Boats Group had used its market power to jack up prices for brokers and dealers.
The claims alleged monopolisation and attempted monopolisation under federal and Florida antitrust laws, plus unfair competition under Florida’s consumer protection statute.
Allegations included Boats Group had consolidated control of the market through acquisitions of major platforms and increased subscription prices by more than 400% over the past decade without proportional improvements in service.
Competing platforms
In addition, it was alleged that Boats Group used exclusive dealing provisions in contracts that discouraged brokers from listing on competing platforms.
It was also alleged that Boats Group benefited from high barriers to entry and strong network effects, making it difficult for new platforms to gain traction.
However, the court found that the complaint failed to allege any anticompetitive conduct.
In a statement, Boats Group said the ruling reinforces that its industry standing is the direct result of genuine innovation, exceptional service and technology designed to help brokers, dealers and everyday owners succeed.
Market position
The Group says the court’s 25-page decision affirmed the lawful nature of Boats Group’s business model and that the plaintiff failed to plead that Boats Group obtained its market position improperly as opposed to achieving ‘growth or development as a consequence of a superior product [and] business acumen’.
Boats Group, headquartered in Miami, has grown into a global business with hundreds of employees.
“Our market position cannot be duplicated by shortcuts or meritless litigation,” said Patrick Kolek, Boats Group CEO.
“There is simply no substitute for the passion, integrity and hard work our team brings to the marine industry every day.”
Baseless claims
He added: “While we remain entirely focused on delivering next-generation product innovation for our community of buyers and sellers, this ruling makes it clear that we will always vigorously and successfully defend our business against baseless claims.”
And he said the court’s decision upholds the established boundaries of antitrust law while preserving a fair, competitive free market.
Boats Group operates online marketplaces for buying and selling boats, including Boat Trader, YachtWorld and boats.com.
