Mackinac Island ferry monopoly: Nessel sues Hoffmann, seeks a forced sale and restitution for riders

LANSING — Michigan Attorney General Dana Nessel sued the Hoffmann Family of Companies on Thursday, accusing the Florida-based firm of illegally monopolizing ferry service to Mackinac Island and asking a judge to order changes that could force it to sell part of what it owns at the Straits.

The antitrust complaint, filed in Ingham County Circuit Court under the Michigan Antitrust Reform Act, names nine defendants, including Hoffmann Family of Companies, Hoffmann Marine, Shepler’s and Arnold Transit, along with affiliated holding and real estate companies, MLive reported. The allegations have not been proven in court, and Hoffmann representatives did not immediately respond to requests for comment Thursday.

What the state alleges

Hoffmann bought a controlling stake in Shepler’s Mackinac Island Ferry in March 2022 and bought the Mackinac Island Ferry Company, the former Star Line, in June 2024. It later revived the Arnold Transit name for that second line. The state says the two brands still charge different fares but answer to the same owner, so travelers have the look of a choice without real competition.

According to the complaint, as reported by MLive and 9&10 News, Hoffmann now controls every commercial passenger ferry dock serving the island and about 80% of long-term parking near the mainland terminals in Mackinaw City and St. Ignace. The state counts more than 116 parcels, 51 buildings and roughly 6,500 parking spaces held in the region, and argues a new competitor would need docks on both sides of the Straits, waterfront land and state permits to get started.

What it costs riders and island businesses

An adult round-trip ticket now runs $39 on Shepler’s and $37 on Arnold before added fees, and both lines have filed plans for another $2 increase in 2027. The complaint says $10 day parking appeared in 2025 at lots that had been free, and that in 2026 Shepler’s day parking rose to $15, standard overnight parking went from $20 to $25 and premium dockside parking hit $75 a night on some days. The state also faults online booking fees and a summer 2024 stretch when the newly bought line’s boats were pulled and riders were sent to Shepler’s.

The cost lands on more than tourists. Island residents, workers and the small businesses that depend on the season ride the same boats and park in the same lots. “It’s much more than another asset for private equity to squeeze dry,” Nessel said on a Thursday press call, according to MLive.

The state wants a court-ordered divestiture, including a forced sale of the Mackinac Island Ferry Company, plus restitution for residents and businesses it says were overcharged, repayment of profits, civil penalties and treble damages. It has asked for a jury trial.

A fight already in federal court

The suit is separate from the federal case Shepler’s and Arnold filed against the City of Mackinac Island in March 2025 over the city’s power to set fares. In March, the 6th U.S. Circuit Court of Appeals let the city regulate ferry fares while that case continues but kept limits on its regulation of mainland parking. The ferry lines’ franchise agreements expire June 30, 2027, and in April the companies said they reserved the right to stop service in 2027 without acceptable terms. In April, Nessel urged both sides to try mediation.

Island voters approved a charter amendment Nov. 3, 465 to 42, giving the city authority over ferry fees and mainland parking charges; the companies say it cannot change their existing franchises. On Wednesday the City Council tabled both lines’ proposed 2027 fares.

Nessel’s term ends in January. She said Attorney General-elect Eli Savitt supports continuing the case, and she urged lawmakers to require advance notice of acquisitions like Hoffmann’s, noting the state has one full-time antitrust attorney.

Sources:
MLive, “Michigan AG sues to break up Mackinac Island ferry monopoly,” Nov. 12, 2026, https://www.mlive.com/news/2026/11/michigan-ag-sues-to-break-up-mackinac-island-ferry-monopoly.html
9&10 News, “Antitrust lawsuit targets company behind Mackinac Island ferries, parking and rising fees,” Nov. 12, 2026, https://www.9and10news.com/2026/11/12/antitrust-lawsuit-targets-company-behind-mackinac-island-ferries-parking-and-rising-fees/
Michigan Department of Attorney General, “AG Nessel Encourages Mediation for Mackinac Island and Ferry Operator,” April 28, 2026, https://www.michigan.gov/ag/news/press-releases/2026/04/28/ag-nessel-encourages-mediation-for-mackinac-island-and-ferry-operator
Photo: Peter K Burian, “The Sheppler ferry dock, Mackinaw City, Michigan.jpg,” Wikimedia Commons, CC BY-SA 4.0, cropped, color-adjusted and resized; derivative shared under the same license, https://commons.wikimedia.org/wiki/File:The_Sheppler_ferry_dock,_Mackinaw_City,_Michigan.jpg

The Straits

Tags: The Straits · Mackinac Island · Dana Nessel · Hoffmann Family of Companies · Shepler’s · Arnold Transit · Antitrust