CCI launches probe against DHL, FedEx

The Competition Commission of India (CCI), a central regulatory agency, investigates the Indian branches of international courier services, including Germany’s DHL, United States-based United Parcel Service (UPS), and FedEx. The probe is focused on suspected antitrust practices and collusion regarding discounts and tariffs, as revealed in documents reviewed by Reuters. It is the latest such scrutiny for the logistics industry, some dating back to 2015, when France levied fines amounting to $735 million on 20 companies, including FedEx and DHL, for secretly colluding to increase prices.

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Competition Commission of India (CCI) in action

In recent weeks, the Competition Commission of India (CCI) has begun reviewing hundreds of thousands of emails as it investigates the fees companies charged for airport services, according to government documents and three sources. Its inquiry began in Oct. 2022 after the Federation of Indian Publishers complained that DHL, FedEx, UPS, Dubai’s Aramex, and some domestic firms were deciding charges together and controlling customer discounts. Such actions, if proven, violate Indian antitrust laws.

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The publisher said company executives exchanged commercially sensitive information regarding volumes, charges, and discounts on courier and storage services offered at airports, before deciding on rates, the documents stated. They “appear to be sharing commercially sensitive information amongst themselves … for taking joint or collective decision to arrive at tariffs”, the CCI said in an early assessment that led to the broader inquiry.