A federal judge has dismissed antitrust claims brought by the City of Mackinac Island in its ongoing legal dispute with the companies that operate ferry service to the Island.
In an Opinion and Order issued in the United States District Court for the Western District of Michigan, Judge Robert J. Jonker ruled that the city does not have legal standing to pursue federal or state antitrust claims related to the ownership of Shepler’s Inc. and Arnold Transit Company. The decision dismisses the city’s antitrust allegations in their entirety.
The City of Mackinac Island had argued that the acquisition of both ferry companies created monopolies in two markets: ferry transportation to and from Mackinac Island and long-term parking services in Mackinaw City and St. Ignace. The city alleged those conditions violated federal and state antitrust laws.
Judge Jonker rejected those claims, writing that market share alone is not enough to establish liability under federal antitrust statutes such as the Sherman Act. The opinion states that even possession of monopoly power, combined with allegations of higher prices, does not violate antitrust law unless there is evidence of exclusionary or anticompetitive conduct.
Hoffmann Family of Companies purchased Shepler’s Ferry in 2022 and later acquired Mackinac Island Ferry Company and its Star Line jets in 2024, rebranding the operation as Arnold Transit Company.
In its ruling, the court said the allegations presented did not show that the ferry operators engaged in exclusionary conduct or blocked potential competitors from entering the market. According to the ruling, the barriers cited by the city, including dock access, parking ownership, and franchise requirements, were either preexisting conditions, regulatory in nature, or not the result of unlawful behavior.
While the antitrust claims were dismissed, the court said the city’s breach-of-contract claim tied to its franchise agreements with the ferry companies will continue. If the city prevails, it could regulate ferry transportation rates and prices during the final two seasons of the current agreements, which expire after 2027.
