International Courier Bigwigs Reportedly Under Regulatory Scanner In India For Suspected Tariff Manipulation: Details

India's Competition Commission (CCI) is reportedly conducting an investigation into several major global delivery companies, including Germany's Deutsche Post (DHL) DHLGY, United Parcel Service Inc UPS from the U.S., and FedEx Corp FDX, over accusations of collusion on discounts and tariffs.

The inquiry follows previous international investigations in the logistics industry, including a 2015 case in France where fines totaled $735 million against companies like FedEx and DHL for price collusion, reported Reuters.

The CCI's current review, which started in October 2022, involves examining extensive email communications as part of its probe into the companies' airport service fees, the report added.

The investigation was triggered by complaints from the Federation of Indian Publishers, alleging that the companies, along with Dubai's Aramex and some domestic firms, were collaborating to set charges and control customer discounts. These actions, if proven, would violate Indian antitrust laws.

According to the CCI's initial assessment, there appears to be an exchange of commercially sensitive information among these companies to jointly decide on tariffs, the report read.

If the companies are found guilty of cartelization, they could face a fine of up to three times their annual profit during the period of the alleged violation or 10% of their annual revenue for each year of violation, whichever is greater.

Price Action: UPS shares closed lower by 0.35% at $156.99 on Thursday.

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