CCI Exonerates DHL, UPS And FedEx Of Price-Rise Collusion Charges

CCI Exonerates DHL, UPS And FedEx Of Price-Rise Collusion Charges

The findings will provide relief to the logistics industry, which has faced scrutiny since 2015

The Competition Commission of India (CCI) has concluded there was no price collusion between the domestic units of delivery companies DHL, United Parcel Service and FedEx after a complaint was filed by the Federation of Indian Publishers (FIP).

The probe concluded that the companies did not share commercially sensitive information or act in concert, even during the pandemic's fluctuating fuel surcharges.

In 2022, the CCI ordered an investigation into over a dozen delivery companies for alleged collusion on discounts and tariffs and reviewed thousands of emails to investigate the fees charged by the companies for airport services.

The FIP had complained that global companies, along with many domestic firms, were deciding charges in unison and controlling customer discounts.

However, the case details were not made public as per the CCI norms.

The Commission stated, "On investigation, no evidence came to the forefront. The allegations levelled by the informant could not be substantiated.”

The probe was completed in July and a report was shared with all parties in late October.

It will be reviewed by top CCI officials, which will then issue a final order clearing the companies. Thereafter, the complainant (FIP) can challenge the findings before senior officials.

The FIP had alleged that some companies set a fuel surcharge of 17-22 percent, citing rising prices, but did not cut them during the Covid-19 pandemic travel curbs when the prices eased.

The CCI observed that during the pandemic, the companies faced an increase in operational costs due to factors ‘beyond their control’ and levied a Covid/Emergency/Peak Surcharge’. However, this was not done in a concerted manner and did not violate antitrust laws.

The findings will provide relief to the logistics industry, which has faced scrutiny since 2015, when France levied a $735 million fine on 20 companies, including FedEx and DHL, for secretly colluding to increase prices.