India probes global delivery giants for alleged collusion on discounts
WAREHOUSING & LOGISTICS

India probes global delivery giants for alleged collusion on discounts

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.

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.

Next Story
Infrastructure Transport

Vizhinjam Port Opens, Set to Boost India’s Trade Efficiency

Vizhinjam International Seaport, inaugurated on 2 May 2025, marks a pivotal step in India’s maritime ambitions. Located near Thiruvananthapuram, Kerala, the deep-sea transshipment port is designed to significantly reduce India’s dependence on foreign ports for container transshipment.Positioned just 10 nautical miles from the key east–west shipping corridor and boasting a natural depth of 24 metres, Vizhinjam can accommodate ultra-large container vessels (ULCVs) without extensive dredging. This strategic location is expected to place the port at the heart of global maritime trade, improv..

Next Story
Infrastructure Transport

Port Giant Enters Freight to Challenge Global Logistics Firms

India’s largest private port operator is rapidly evolving from a port-centric business into a comprehensive logistics powerhouse, marking its formal entry into the international freight forwarding sector. This strategic shift is set to redefine cargo movement across India and position the company as a formidable rival to the global logistics multinationals that have long dominated the industry.With a commanding 45.5 per cent share in container handling at Indian ports, and a substantial presence across warehousing, rail freight, trucking, and air cargo, the group’s logistics arm has launch..

Next Story
Infrastructure Urban

Antfin to Sell 4% Paytm Stake for Rs 20.65 Bn

China’s Alibaba Group is set to pare down its stake in One 97 Communications, the parent company of Paytm, through an open market sale scheduled for Tuesday.According to sources, Antfin Netherlands Holding BV—an affiliate of Alibaba-backed Ant Group—will offload 26 million shares, representing roughly 4 per cent equity in the Indian fintech firm.The floor price for the sale is pegged at Rs 809.75 per share, reflecting a 6.5 per cent discount to Monday’s closing price of Rs 866.35 on the BSE. At this minimum price, the sale is expected to generate around Rs 20.65 billion for the Chinese..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?