Michigan is suing the company that owns and operates ferry services on Mackinac Island, alleging they have monopolized the market.
Attorney General Dana Nessel said in a press conference Thursday that Hoffmann Marine violated Michigan’s anti-trust laws when it bought out all ferry lines to the island and long-term parking options.
Nessel said the company has “leveraged massive power” by threatening to suspend ferry services to the island if officials did not comply with pricing.
"We've seen Hoffmann do exactly what you'd expect a monopoly to do,” Nessel said. ”They've raised prices, limited services, and leveraged their massive power in alarming ways."
Hoffmann Marine told WCMU that they're disappointed by the lawsuit and believe they are not violating state or federal anti-trust laws.
“As a reminder, the federal court has already twice rejected the City of Mackinac Island’s antitrust claims in its federal litigation against us,” said Hoffman Marine in an emailed statement to WCMU.
In April, Nessel issued a statement encouraging the island and ferry company to resolve disputes. Hoffmann Marine told WCMU they agreed with that statement and believe this lawsuit "threatens to derail those efforts.”
Nessel filed the lawsuit as she approaches the end of her time as Michigan’s attorney general due to term limits. She said attorney general-elect Eli Savit is aware of the lawsuit and supports it.
“He's in full-throated support of continuing this and making sure that we are, again, protecting the businesses and the people of Mackinac Island, as well as people all over the state and our country who wish to enjoy it,” Nessel said.
Nessel said a judge should force Hoffmann Marine to sell their ferry lines to restore competition.
The suit comes shortly after voters passed an amendment to the island's charter on Nov. 3, giving Mackinac Island officials the final say over ferry ticket and parking rates.
