DHL, FedEx, UPS under Indian probe for controlling prices together
The Competition Commission of India (CCI) is investigating several delivery companies, including Germany's DHL, US-based United Parcel Service (UPS), and FedEx, for alleged collusion on discounts and tariffs. This probe comes after similar investigations in the logistics industry, such as France fining 20 companies a total of $735 million in 2015 for secretly colluding to raise prices. CCI's inquiry started in October 2022 when the Federation of Indian Publishers accused these companies of jointly determining charges and controlling customer discounts.
CCI reviews emails and documents in investigation
CCI is examining hundreds of thousands of emails to analyze the fees these companies charged for airport services. Government documents and sources cited by Reuters reveal that company leaders shared commercially sensitive details about how much they charged for courier and storage services at airports before setting rates. CCI's early assessment stated that the companies "appear to be sharing commercially sensitive information amongst themselves... for taking joint or collective decision to arrive at tariffs."
Companies respond to allegations and potential fines
FedEx has firmly denied the allegations in the complaint but confirmed its cooperation in the probe. DHL also assured its full cooperation and adherence to legal compliance. UPS did not provide details about the ongoing investigation but confirmed its cooperation with the watchdog. If found guilty of cartelization, these companies could face fines of up to three times their profit in each year the fee was fixed or 10% of annual revenue for each year of violation, whichever is greater.
