On Thursday, Michigan Attorney General Dana Nessel filed an antitrust lawsuit against the Hoffmann Family of Companies and affiliated entities (Hoffmann), alleging they unlawfully monopolized the markets for passenger ferry transportation to Mackinac Island and the long-term parking services essential to reaching the iconic destination. Through a series of acquisitions, Hoffmann gained control of every passenger ferry line and commercial dock serving Mackinac Island, as well as nearly all long-term parking near the mainland ferry terminals in Mackinaw City and St. Ignace. The lawsuit seeks to restore competition, protect consumers and local businesses, and end the harmful effects of monopoly power. Among other relief, the attorney general is asking the court to order structural remedies, including the potential divestiture of ferry and parking assets, to reestablish a competitive marketplace and ensure travelers have meaningful choices.
Historically, ferry service to Mackinac Island has been offered by multiple distinct and competing businesses. In 2022, Hoffmann, a private equity firm headquartered in Florida, acquired a controlling stake in one of only two active ferry lines, and in 2024 acquired the other. Since that time, Hoffmann has exercised control over both ferry service operators, including their vessels, docking facilities, and parking lots, and has managed their operations through its Hoffmann Marine division.
By these acquisitions, Hoffmann acquired unlawful monopoly power in both the ferry service and long-term parking markets essential to nearly all travel to Mackinac Island, and has used this monopoly power to raise ferry fares above competitive price levels, impose new fees, eliminate discounts and passes relied on by Island residents and workers, begun charging for parking that was previously offered at no cost, and eliminated consumer choice. It has, in the same time span, also suspended certain ferry services and terminated some customer benefits.
The attorney general’s lawsuit, filed in the 30th Circuit Court for Ingham County, alleges monopolization, unlawful agreements in restraint of trade, and unjust enrichment arising from the defendants' consolidation of the Mackinac Island ferry and related parking markets. The lawsuit seeks broad relief, including divestiture and other structural remedies to reopen these markets to competition, provide consumers with meaningful choices, and ensure fair market conditions for residents, businesses, and visitors.
The attorney general additionally asks the Court to order disgorgement of Hoffmann’s unlawfully obtained monopoly profits, damages for overcharges paid for ferry service and parking, and civil penalties, arguing Michigan residents have been made to pay supracompetitive prices for both ferry service and parking, and have received worse service and fewer market choices in return.
“Hoffmann did not earn its ferry monopoly by offering better service or lower prices. Instead, it purchased its monopoly by illegally acquiring all of its potential rivals,” said Nessel. “When the Mackinac Island City Council tried to rein them in, Hoffmann threatened to cease all ferry service, essentially holding the Island’s entire economy hostage. One corporation cannot be allowed to threaten the economic health and well-being of any town in Michigan. No corporation should hold such immense power in any Michigan market—and that is precisely why we have, and will continue to aggressively enforce, robust antitrust laws.”
Hoffmann owns more than 116 parcels of land and 51 buildings in the Straits of Mackinac region, making it the area’s largest landholder. It also owns both newspapers that cover the Island, the St. Ignace News and the Mackinac Island Town Crier; Sip n’ Sail Cruises, a sightseeing and dinner-cruise company; the Mackinac Marine Services shipyard; and the East Dock, the Island’s premier private yacht dock.
Below is a statement from Mayor Margaret Doud on behalf of the City of Mackinac Island:
“This was never only an Island issue. More than 1.5 million people travel to Mackinac Island each year, and many of them are Michigan families. Over 80% of the Island is designated as Mackinac Island State Historic Parks, which belongs to the people of Michigan. The State has stepped forward on their behalf, and we are grateful.
“Our goal has always been the same: a ferry system that serves the public and preserves the Mackinac Island experience for future generations. We are grateful and relieved that the Attorney General has joined us in our attempt to achieve that goal.”
Historically, ferry service to Mackinac Island has been offered by multiple distinct and competing businesses. In 2022, Hoffmann, a private equity firm headquartered in Florida, acquired a controlling stake in one of only two active ferry lines, and in 2024 acquired the other. Since that time, Hoffmann has exercised control over both ferry service operators, including their vessels, docking facilities, and parking lots, and has managed their operations through its Hoffmann Marine division.
By these acquisitions, Hoffmann acquired unlawful monopoly power in both the ferry service and long-term parking markets essential to nearly all travel to Mackinac Island, and has used this monopoly power to raise ferry fares above competitive price levels, impose new fees, eliminate discounts and passes relied on by Island residents and workers, begun charging for parking that was previously offered at no cost, and eliminated consumer choice. It has, in the same time span, also suspended certain ferry services and terminated some customer benefits.
The attorney general’s lawsuit, filed in the 30th Circuit Court for Ingham County, alleges monopolization, unlawful agreements in restraint of trade, and unjust enrichment arising from the defendants' consolidation of the Mackinac Island ferry and related parking markets. The lawsuit seeks broad relief, including divestiture and other structural remedies to reopen these markets to competition, provide consumers with meaningful choices, and ensure fair market conditions for residents, businesses, and visitors.
The attorney general additionally asks the Court to order disgorgement of Hoffmann’s unlawfully obtained monopoly profits, damages for overcharges paid for ferry service and parking, and civil penalties, arguing Michigan residents have been made to pay supracompetitive prices for both ferry service and parking, and have received worse service and fewer market choices in return.
“Hoffmann did not earn its ferry monopoly by offering better service or lower prices. Instead, it purchased its monopoly by illegally acquiring all of its potential rivals,” said Nessel. “When the Mackinac Island City Council tried to rein them in, Hoffmann threatened to cease all ferry service, essentially holding the Island’s entire economy hostage. One corporation cannot be allowed to threaten the economic health and well-being of any town in Michigan. No corporation should hold such immense power in any Michigan market—and that is precisely why we have, and will continue to aggressively enforce, robust antitrust laws.”
Hoffmann owns more than 116 parcels of land and 51 buildings in the Straits of Mackinac region, making it the area’s largest landholder. It also owns both newspapers that cover the Island, the St. Ignace News and the Mackinac Island Town Crier; Sip n’ Sail Cruises, a sightseeing and dinner-cruise company; the Mackinac Marine Services shipyard; and the East Dock, the Island’s premier private yacht dock.
Below is a statement from Mayor Margaret Doud on behalf of the City of Mackinac Island:
“This was never only an Island issue. More than 1.5 million people travel to Mackinac Island each year, and many of them are Michigan families. Over 80% of the Island is designated as Mackinac Island State Historic Parks, which belongs to the people of Michigan. The State has stepped forward on their behalf, and we are grateful.
“Our goal has always been the same: a ferry system that serves the public and preserves the Mackinac Island experience for future generations. We are grateful and relieved that the Attorney General has joined us in our attempt to achieve that goal.”
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