India probes global delivery giants for alleged collusion on discounts

09 Jan 2024 CW Team

The Competition Commission of India (CCI) has initiated a review, examining a vast number of emails to investigate fees charged by companies for airport services. The inquiry, which commenced in October 2022, was triggered by a complaint from the Federation of Indian Publishers alleging that DHL, FedEx, UPS, and Dubai's Aramex, along with some domestic firms, were collectively determining charges and controlling customer discounts. Such actions, if proven, would violate Indian antitrust laws.

According to documents, the publishers claimed that executives exchanged commercially sensitive information related to volumes, charges, and discounts on courier and storage services at airports before determining rates. The CCI, in its preliminary assessment leading to the broader inquiry, stated that there was apparent sharing of commercially sensitive information among the companies for joint decision-making on tariffs.

While the antitrust watchdog did not respond to Reuters' request for comment, FedEx denied the allegations in the complaint but asserted its cooperation with the CCI, emphasising its commitment to legal compliance. DHL also stated full cooperation and adherence to legal standards, while UPS, unable to provide details on an ongoing investigation, confirmed cooperation with the regulatory body.

If proven guilty of cartelisation, the companies could face fines up to three times the profit for each year the fee was fixed or 10% of annual revenue for each year of violation, whichever is greater. The courier and parcel delivery services market is anticipated to grow significantly, with many companies optimistic about its prospects, driven by a 17% annual growth rate expected to reach $18.3 billion by 2029, fuelled by the e-commerce boom.

India's competition regulator is currently scrutinising the local branches of global delivery giants, including Germany's DHL, US based United Parcel Service (UPS), and FedEx, over suspected collusion on discounts and tariffs, according to documents reviewed by Reuters. This investigation is part of a broader trend in the logistics industry facing regulatory scrutiny, with some cases dating back to 2015 when France imposed fines totalling $735 million on companies, including FedEx and DHL, for clandestine collaboration to raise prices. The Competition Commission of India (CCI) has initiated a review, examining a vast number of emails to investigate fees charged by companies for airport services. The inquiry, which commenced in October 2022, was triggered by a complaint from the Federation of Indian Publishers alleging that DHL, FedEx, UPS, and Dubai's Aramex, along with some domestic firms, were collectively determining charges and controlling customer discounts. Such actions, if proven, would violate Indian antitrust laws. According to documents, the publishers claimed that executives exchanged commercially sensitive information related to volumes, charges, and discounts on courier and storage services at airports before determining rates. The CCI, in its preliminary assessment leading to the broader inquiry, stated that there was apparent sharing of commercially sensitive information among the companies for joint decision-making on tariffs. While the antitrust watchdog did not respond to Reuters' request for comment, FedEx denied the allegations in the complaint but asserted its cooperation with the CCI, emphasising its commitment to legal compliance. DHL also stated full cooperation and adherence to legal standards, while UPS, unable to provide details on an ongoing investigation, confirmed cooperation with the regulatory body. If proven guilty of cartelisation, the companies could face fines up to three times the profit for each year the fee was fixed or 10% of annual revenue for each year of violation, whichever is greater. The courier and parcel delivery services market is anticipated to grow significantly, with many companies optimistic about its prospects, driven by a 17% annual growth rate expected to reach $18.3 billion by 2029, fuelled by the e-commerce boom.

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Infrastructure Urban

22 Oct 2025

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Infrastructure Energy

22 Oct 2025

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..