Trade Only Today this week on Wednesday contacted Boats Group vice president of marketing Courtney Chalmers for comment on an antitrust lawsuit filed against the company on Aug. 14 by Brill Maritime Inc., which does business as Export Yacht Sales in Miami.
Chalmers responded to the inquiry, stating: “Please identify any assertions of fact in the story that you are asking us to respond to and we will get back to you promptly.”
Editor-in-chief Gary Reich on Wednesday afternoon emailed Chalmers a list of five allegations made in the lawsuit, which included assertions that:
“Having achieved market dominance, Boats Group has used its market power to impose steep and sustained price increases on its customer base, primarily small to mid-sized brokerages and dealers.”
“Boats Group has willfully acquired, maintained and expanded monopoly power in this market by engaging in exclusionary and anticompetitive conduct, including the serial acquisitions of its main competitors, unilateral price increases, restrictive contractual terms, and practices that hinder entry and expansion by rival platforms.”
“This dominance has enabled Boats Group’s predatory conduct to persist over time, allowing it to impose supracompetitive prices for subscription-based listing and marketing services without losing significant business to rivals, restrict sellers’ ability to switch to alternative services, and foreclose entry and expansion by rival platforms.”
“Boats Group reinforces its market dominance through the use of contractual restraints that functionally foreclose competition.”
“As direct purchasers of Boats Group’s subscription-based listing and marketing services, Plaintiff and members of the Classes have paid prices substantially above those that would prevail in a competitive market.”
On Thursday afternoon, Boats Group’s legal counsel sent a response to the request to Firecrown Media’s attorney in an e-mail.
Boats Group’s counsel has authored multiple cease-and-desist letters sent to Firecrown’s attorney that relate to Boats Group reporting found in the March and June issues of Soundings Trade Only. Those letters each demand a correction, apology or retraction regarding those printed stories.
Soundings Trade Only stands by its reporting.
The statement, provided on behalf of Boats Group’s attorney, states:
The marine industry is constantly evolving, and the number of online marketplaces and tools serving the industry has grown dramatically. The allegations ignore the reality that we operate in a competitive environment where sellers have more choices than ever before. We see this as validation of the marine industry’s digital transformation, where the most successful sellers are abandoning the ‘old ways’ to reach a more digitally native audience. This competition benefits everyone by driving innovation and improving services.
[Soundings Trade Only’s] May 30 article noted that “competitors abound,” and while the article contained misstatements about Boats Group, it did highlight the growing number of alternative marketplaces available to sellers. Since then, additional platforms have entered the space, further expanding the range of options for sellers.
The article also spotlighted an industry-owned and controlled competing product while highlighting the role of associations in educating sellers on these alternatives. For example, Paul Flannery, President of IYBA, promoted Yachtr as the official industry-owned MLS, available exclusively to members of associations such as IYBA, YBAA, CYBA, and NYBA. By contrast, our platform is open to all sellers regardless of affiliation. In the article, Flannery also noted that “many companies now [present] themselves as alternatives to Boats Group.”
In addition, Matt Gruhn, President of MRAA, underscored the industry’s accelerating shift toward digital marketing. He described MRAA’s most comprehensive educational programs to date, which are “designed to empower business owners to make the best marketing-related decisions for their dealerships. This spotlight on online marketing will help dealers achieve success, no matter what business model, partners, or cost structure are chosen … put the power back in dealers’ hands.”
Boats Group will continue to invest in its products to deliver the strongest possible value for our customers, and the next chapter of change is fully underway with advancements in AI. We remain proud to serve sellers who find success with our platform. At the same time, we recognize the market is challenging and that our solutions may not suit every seller, particularly those who have not embraced a digital-first approach to marketing. That is why we actively encourage sellers to explore a range of marketing channels for their unique business so they achieve the best possible return on their investments.
Trade Only Today will continue to monitor the lawsuit and provide updates as they become available.
