Crisis-hit small French parcel firms have escaped heavy fines from the country’s competition watchdog, the Autorité de la Concurrence (CFA), following its investigation into price-fixing over a period running from 2004 to 2010.
Yesterday the regulator announced fines totalling €672 million with some of the heaviest financial sanctions handed out to France's biggest operators such as SNCF-owned Geodis (€196m) and La Poste subsidiaries Chronopost (€99m) and DPD France, formerly Exapaq, (€45m).
However, it took a far more lenient stance with six of their smaller domestic peers – Ciblex, Heppner, Lambert et Valette, XP France, Transport Henri Ducros and Ziegler – reducing their fines by more than 90% in relation to the amount theoretically due in recognition of the difficulties which the French market has struggled with for many years. The fines were reduced to amounts ranging from €3m to €10,000.
In a video interview with French online publication ‘Transport-Logistique.fr’, CFA president Bruno Lasserre, said: "We are well aware that this is a sector that it is not in good shape and this has been taken into account in calculating the financial sanctions and in two distinct ways.
"First of all, whenever the guidelines relating to fines offered room for manoeuvre we chose the criteria which allowed the imposition of the most modest amount. Secondly, for the six firms who provided proof – in the form of tax and accounts documents – of the existence of financial difficulties, we have significantly reduced their fines in taking into account their capacity to pay them. And these six firms have seen their fines reduced by more than 90% in order to be sure that they have the capacity to pay up without laying off staff."
Lasserre rejected claims that in imposing the fines, the regulator was endangering the well-being of firms, underlining that the aim was to get them to face up to their difficulties and find solutions. "Far from helping firms to resolve their underlying problems, collusive action had delayed the process. The firms came out of the cartel in 2010 – not spontaneously but as a result of our investigation – weaker than when they entered into it in 2004."
France's B2B parcels sector has been in the doldrums for a number of years largely due to over-capacity among operators, itself partly a consequence of prolonged economic stagnation in the country. This has created fierce competition, driving down rates.
For example, DHL Express pulled out of the domestic parcels market in 2010 when it sold its unit, the former Ducros Express. Re-named back to Ducros, this loss-making company was merged shortly afterwards with larger rival Mory to create Mory Ducros.
But the merged company, later re-named to Mory Global, failed to move out of the red and in March this year was wound up with the loss of more than 2,000 jobs following protracted efforts to save the heavily loss-making firm. It had been taken over by company rescue specialist, Arcole Industries, early in 2014 who instigated a restructuring programme which included axing 2,800 jobs. Mory Global even benefited from multi-million euro state loan in a last-ditch attempt to put the firm on a viable footing but to no avail.
Another notable company collapse in the sector was that of long-suffering SNCF-owned Sernam which after chronic losses over many years and several periods under judicial administration, was the subject of a partial takeover by another French railways' subsidiary, Geodis, in 2012. At the time of the takeover, France’s leading road haulage federation, the FNTR, said Sernam owed more than 6,000 sub-contractors tens of millions of euros.
Consolidation has also been a feature of France's domestic parcels and freight market, with major international groups buying up French-owned firms. These tie-ups include FedEx-Tatex, Schenker-Joyau, Dachser-Graveleau and KN-Alloin.
