Leading international freight forwarders, including DHL, Kuehne + Nagel, Panalpina, DSV and UPS,are under investigation by the European Commission over an alleged ‘price-fixing cartel’ in
connection with air freight surcharges.The EU Commission announced yesterday that it has sent an official Statement of Objectionsdocument to a number of companies concerning their alleged participation in price-fixing cartels inthe air freight forwarding business in violation of the EU antitrust rules (Article 101 of theTreaty on the Functioning of the European Union – TFEU – and Article 53 of the Agreement on theEuropean Economic Area). The EU executive already carried out surprise inspections in October 2007at the premises of various freight forwarders.
The Commission said it is investigating allegations that these companies fixed prices bycolluding on the imposition, level, timing and application of various surcharges, in breach ofArticle 101 of the TFEU. The allegations concern four separate infringements involving theprovision of freight forwarding services from the UK to outside the EEA, from the EEA to the US,from China to the EEA and from Southern China/Hong Kong to the EEA. Fuel surcharges are not underinvestigation, according to Deutsche Post DHL.
A Statement of Objections is a formal step in Commission antitrust investigations in whichthe Commission informs the parties concerned in writing of the objections raised against them. Therecipient can respond in writing and may also request an oral hearing to present its comments.Thereafter, the Commission can decide whether the actions under investigation are or werecompatible or not with EU antitrust rules.
In response, Deutsche Post DHL announced that the Global Forwarding division had received aStatement of Objections and confirmed that DHL Global Forwarding has been cooperating with theEuropean Commission in connection with the investigation.
“DHL Global Forwarding cooperation began after the company became aware during the course ofan internal investigation that activities potentially raising concerns under the competition lawsmay have occurred. Deutsche Post AG and relevant subsidiaries, as part of its cooperation, havebeen granted immunity from prosecution and fines by the European Commission conditional upon DHLGlobal Forwarding continued cooperation,” the company stated.
The economic effects of the reported activities were minimal, and the investigation does notaffect the Mail, Express and Supply Chain divisions, DP DHL added.
A UPS spokesman told international media that the company had received the EuropeanCommission document and would examine the findings.
Panalpina confirmed it had received a Statement of Objections from the European Commission,would closely examine the preliminary findings and would respond in due time. “It is not possibleto predict the outcome of these proceedings at this stage. They may, however, result in materialpenalties being imposed on Panalpina entities,” the company stated.
Kuehne + Nagel said the Statement of Objections followed the investigations initiated by theEuropean Commission at Kuehne + Nagel premises in October 2007 and subsequent questionnaires. Thecompany would examine the Statement of Objections, respond in due course and reserved its right toexhaust legal remedies.
Danish-based DSV confirmed its subsidiary ABX Logistics France had received the Statement ofObjections, which it said concerned one matter in the period 19 March 2003 until 19 August 2004.It, too, would prepare a reply to the European Commission.
