France's Competition Authority (FCA) yesterday completed adversary proceedings within the framework of its investigation, which began in 2010, concerning suspected price-fixing among major operators in the French parcel and express distribution sector between 2003 and 2007.
The regulatory body is expected to deliver its judgement by the end of the year or early in 2016. The FCA is said to have launched the investigation following information from German Railways (Deutsche Bahn) subsidiary, DB Schenker.
Around 20 firms have been targeted by the investigation and include FedEx, Royal Mail (GLS), DHL, TNT Express, La Poste (Chronopost and Exapaq) and SNCF-owned Geodis' unit, Calberson, as well as independent operators such as Alloin, Graveleau, Heppner and Mory – some of whom are no longer trading under this name – and trade federation TLF, CEP-Research understands.
A 226-page 'notification of grievances' report, addressed by the regulator to the 'defendants' in June last year, refers to the setting up of a collusive system between 2003 and 2007.
The report went on to highlight “exchanges of sensitive commercial information” which had taken place at two levels – directly between the firms under investigation, and also and more often at meetings organised under the TLF banner.
While the Autorité de la Concurrence declined to comment, a source close to the investigation told CEP-Research that the regulator's judgement was expected in the coming weeks and almost certainly by the end of the year.
Yesterday's hearing had been to allow firms to put their case orally having had two opportunities to do so in writing previously.
TNT confirmed that it was represented at yesterday's hearing. "We expect a decision (from the regulator) during the fourth quarter of 2015 or the beginning of next year,” a spokesman said.
In July 2014, TNT had announced that it had received a Statement of Objections (SO) from the FCA, adding that it had co-operated with the investigation since it started in 2010.
In September, last year, the company revealed that it was entering into a settlement with the FCA "with respect to the investigation of alleged anti-competitive behaviour in the French parcels delivery sector. The settlement will include a reduction percentage to the fine, the absolute amount of which the authorities are not expected to determine before the end of 2015."
TNT would be making a financial provision of €50m in the third quarter (2014), the statement added.
Another firm to take a similar step was Royal Mail. In a statement last October, it said it had entered into a settlement agreement with the FCA over alleged breaches of antitrust laws by its GLS France parcels subsidiary, setting aside €23m to cover a potential fine and legal costs.
Both TNT and Royal Mail said they did not wish to elaborate further on the investigation and its likely outcome.
As for some of the other defendants, Geodis was asked if it continued to contest the allegations set out in the regulator's report – a position it had taken up initially – but declined to comment.
FedEx Express confirmed that a hearing took place "regarding an investigation conducted by the French involving a company (Tatex) FedEx Corp. acquired".
"The investigation relates to the period pre-dating the acquisition by FedEx. We are co-operating with the Authority. It would be inappropriate for us to comment further until the court announces its judgment. FedEx has a long-standing commitment to complying with the law, including competition law, wherever we operate," the company added.
DHL also confirmed that it had participated in the hearing yesterday. "We are answering all questions put to us and, given that the case is ongoing, we are not prepared to provide any further comment until the findings are released," a spokesman said.
A UPS spokesman said that the company was not involved in the legal investigation.
