The 20 delivery companies have been fined a total of 672 million euros for collaborating over price increases over a period of six years. France’s competition regulator has gone through secret meetings from 2010-2014 and come to the conclusion that the collaboration has been very damaging especially to small businesses that use package delivery services, accoring to ABCNews.
The regulator found several examples of price colluding while going through the documentation from the companies’ meetings. In one case the companies together had decided to make their customers pay for higher diesel costs. In another case some companies had planned a price increase of 5 percent, but after meetings with the others, instead decided on a 7 percent rise.
Cartel Exposed by Whistleblowers
The authorities found out about the illegal activity by whistleblowers who had decided to come forward through a special program. Both FedEx and FedEx Express have confirmed that they have received the regulator’s decision but have chosen not to give any further comments.
- We are reviewing it in more detail, said Daniel McGrath, spokesperson of Deutsche Post-DHL.
FedEx Express however noted that the colluding was in fact carried out by Tanex, a company that FedEx acquired in 2012, according to ABCNews.