A Federal Express truck makes its way down a freeway in San Diego, California August 22, 2014.© Mike Blake / Reuters
France's competition regulator has fined 20 package delivery companies, including the French operations of FedEx and DHL, a total of €672-million ($740-million U.S.) for colluding on price increases over a period of six years.
The competition authority's ruling Tuesday outlined secret meetings from 2004-2010, and said the price rises implemented were especially damaging to small businesses that use package delivery services.
In one case, companies agreed to a standard system to pass on higher diesel costs to customers, the authority said. And in another, it said some companies had been planning an annual 5 per cent increase, but after secret meetings with representatives from other delivery companies, decided to raise them 7 per cent instead.
Regulators discovered the activity thanks to a special program of clemency for whistleblowers.
FedEx Express said in a statement that the company "accepts the decision" but noted that the practices were carried out by another company Tatex, which it FedEx acquired in 2012. The company insisted it "has a longstanding commitment of compliance with all laws, including competition laws, in all countries in which it operates."
Deutsche Post-DHL spokesman Daniel McGrath confirmed that the company has received the regulator's decision, but would not comment further. "We are reviewing it in more detail," he said.