FedEx, TNT Express, Royal Mail face French antitrust allegations
FedEx, TNT Express and Royal Mail are being investigated by the French competition authorities over possible antitrust law violations. The companies face allegations dating back to 2010 relating to possible discussions by subsidiaries at trade association meetings, with the suggestion that it broke European competition law.
The companies have confirmed in statements to investors that the Autorité de la Concurrence (Competition Authority) has sent formal notices to the companies in regard to investigations that extend back to 2010.
Allegations of antitrust law breaches have been made against TNT Express France, Royal Mail’s parcel business GLS France and TATEX, the express parcels business bought by FedEx in 2012.
TNT Express said it had been cooperating with the investigation since it started in 2010, but it could not rule out the possibility that it could be financially penalised over the findings of the Competition Authority.
The company said: “On the basis of preliminary analysis of the SO, it cannot be excluded that TNT Express will be fined for a material amount as a result of this procedure.”
Trade association meetings
FedEx Corp, which bought TATEX for $55m in July 2012, confirmed in a filing with the US Securities and Exchange Commission that it received its Statement of Objections from the French Competition Authority on 30 June.
It said the formal notice referred to an investigation into anticompetitive behaviour “that is alleged to have occurred primarily in the framework of trade association meetings that included the former general managers of TATEX prior to our acquisition”.
The US express delivery giant added: “Given the early stage of this matter, we cannot yet determine the amount or range of potential loss; however, it is reasonably possible that it could be material.”
Royal Mail said this morning that the allegations were in connection with a broader investigation within the industry in France.
The British postal operator said in its statement: “We are currently considering the notice received from the French regulator. Given the early stage of this matter, we cannot yet determine the amount or range of potential loss; however, it is possible that it could be material.”
