Govt investigates DHL, FedEx, UPS for suspected discount and tariff collusion

In a significant probe by the Competition Commission of India (CCI), the domestic branches of global delivery giants like DHL, United Parcel Service (UPS), and FedEx are under scrutiny for potential collusion in setting discounts and tariffs.

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This investigation stems from allegations of these companies, along with others like Dubai's Aramex and some domestic firms, manipulating charges collectively and controlling customer discounts in violation of Indian antitrust laws.

The CCI's inquiry, initiated in October 2022 following a complaint by the Federation of Indian Publishers, alleges that these companies exchanged sensitive information related to volumes, charges, and discounts for courier and storage services at airports. The evidence suggests they made joint decisions on rates, prompting the CCI's broader investigation.

The watchdog has begun reviewing an extensive volume of emails to delve into the fees charged by these companies for airport services. The preliminary assessment by the CCI indicates a possible sharing of commercially sensitive information among these firms to collectively determine tariffs.

Both FedEx and DHL have denied the accusations but expressed cooperation with the CCI, emphasizing their commitment to legal compliance. UPS also confirmed its cooperation with the ongoing, non-public investigation. Aramex and the Indian complainant did not respond to queries from Reuters.

If proven, cartel-like actions could lead to substantial fines, potentially three times the profit in each year the fee was fixed by the companies or 10% of annual revenue for each year of violation, whichever is higher.