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Parcel and express delivery operators appeal against French price-fixing fines

Several major parcel and express delivery operators have lodged appeals against price-fixing fines handed out by the French Competition Authority (FCA) in December last year, CEP-Research understands.

25 January had been the deadline for the submission of appeals.

The FCA had announced fines totalling more than €672 million on 20 operators as well trade body Transport et Logistique de France (TLF) following an investigation into suspect commercial practices between 2004 and 2010.

The heaviest fines were imposed on Geodis (€196m), La Poste subsidiaries Chronopost (€99m) and DPD France –  formerly Exapaq (€45m), DHL Express France (€81m), TNT Express (€58.5m), GLS France (€55m), Dachser France (€33m), Alloin Holding (€32m), Gefco (€30m) and FedEx Express France (€17m).

The other companies involved, which had lower fines, were BM Virolle, Ciblex, Heppner, Lambert et Valette, XP France, Norbert Dentressangle (now XPO Logistics), Normatrans, Schenker France, Transport H. Ducros and Ziegler France. The TLF was fined €30,000 for its role in the price-fixing.

The FCA stressed that the fines were fair and proportionate, and had been significantly reduced for six French companies that were in financial difficulties.

However, as soon as the fines were announced, Geodis stated that it would appeal to the Appeals Court in Paris. “Geodis implemented a robust compliance programme across the group several years ago that is designed to prevent any improper behaviour,” it said.

Geodis has since been joined in appealing by La Poste, DHL Express, Dachser, Gefco, XPO Logistics and DB Schenker, the latter having picked up a €3m fine despite parent company Deutsche Bahn being the ‘whistleblower’ on the price-fixing practices.

No one was immediately available to comment at Kuehne+Nagel on whether an appeal had been submitted. Its French unit's fine had been reduced by 30% in return for "full co-operation" in the investigation.

FedEx confirmed that it had decided not to appeal the FCA's decision despite the fact that the case concerned Tatex – now FedEx Express France – and related to a period prior to March 2010 when the express distribution giant did not own the company. Tatex was acquired by FedEx in 2012.

As for the UK's Royal Mail, the parent company of GLS France, it had agreed not to contest the allegations and benefited from a reduction in the French competition authority's fine to €55.1 million). 

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