A federal judge has dismissed antitrust claims brought by the City of Mackinac Island in an ongoing legal battle with the ferry companies that transport visitors to the island, after the city alleged that their common ownership has created a monopoly and eliminated competition.
U.S. District Judge Robert J. Jonker issued an opinion Feb. 20, ruling that the city does not have legal standing to pursue antitrust claims related to the ownership of the island’s two main ferry operators.
“The City’s new allegations fail to cure a fundamental defect present in the City’s original counterclaims: namely, that the City lacks standing to bring any antitrust claims,” Jonker wrote in the ruling.
Hoffmann Family of Companies, which owns the two ferry lines, said Thursday it was pleased with the court’s findings and the dismissal of the antitrust claims.
In a statement sent by Rachel Berkowitz, the company’s vice president of marketing and communications, it said: “Hoffmann Family of Companies remains fully committed to the communities of Mackinac Island, Mackinaw City, and St. Ignace, and we look forward to another great summer on the water — ferrying residents and visitors with the highest level of care and delivering an exceptional guest experience throughout the season.”
Representatives for the City of Mackinac Island did not respond Thursday to a request for comment.
The dispute stems from Hoffmann Family’s purchase of Shepler’s Ferry in 2022, followed by its acquisition of Mackinac Island Ferry Co. and its Star Line jets in 2024, later rebranded to Arnold Transit Company. The city has argued that these acquisitions eliminated competition in ferry transportation and long-term parking for visitors and that it created a monopoly controlling about 90-95% of ferry service and 80-85% of parking in and around Mackinaw City and St. Ignace, according to court documents.
More than 1 million tourists visit the island each summer, officials say, with most relying on ferries to get there.
Shepler’s Inc. filed a complaint in early 2025 alleging the city had overstepped its authority in regulating the company’s fares and schedules for ferries as well as its prices for parking and business operations. The City of Mackinac Island filed a countersuit with multiple claims, asserting it has the right to regulate parking and fare fees and claiming that the companies’ common ownership was anti-competitive.
The city also said Hoffmann controls most long-term parking near the ferry docks and raised rates while eliminating free shuttles for island employees and residents. However, the court noted that a third-party operator has opened a long-term parking lot near the Mackinaw City docks, offering an alternative for visitors.
While the city’s antitrust claims were dismissed, the judge noted the city still has options to address its breach-of-contract claim under its franchise agreements with the ferry companies.
“Although the City cannot bring antitrust claims against Hoffman [sic] or the Ferry-Companies, it is not without recourse,” the ruling read. “Its breach of contract claim against the Ferry-Companies is still pending before the court. If the City prevails, it will have the ability to regulate the Ferry-Companies’ transportation rates and prices for the two seasons remaining under the Franchise Agreements. And even if the City does not prevail, it will have complete freedom to negotiate terms for all the seasons after 2027.”
cwilliams@detroitnews.com
@CWilliams_DN
This article originally appeared on The Detroit News: Mackinac Island ferry companies prevail over city in antitrust lawsuit
Reporting by Candice Williams, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
