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PRICE FIXING

Air freight firms fined for Swiss price fixing

The Swiss Competition Commission has fined four transit companies, including Deutsche Bahn and Kuehne and Nagel International, for fixing prices on air freight passing through Switzerland.

"The Competition Commission has inflicted a sanction of 6.2 million francs ($6.7 million) on four international transit companies who fixed fees and surcharges in the area of air freight," the regulator said in a statement on Tuesday.

The commission, or Comco, said it had decided on December 11th to hand the biggest fine of 3.12 million francs to Swiss Panalpina Welttransport, while another Swiss company, Kuehne and Nagel, was fined 1.17 million francs.

The German national rail company Deutsche Bahn received a 1.02-million-franc fine, while the Kuwait-headquartered Agility Logistics International was fined 907,349 francs.

The German postal service Deutsche Post had also taken part in the cartel, but since it turned itself in and alerted the authorities to the illegal practices it was offered immunity, Comco said.

Deutsche Bahn and Agility had also negotiated and received lower fines, the regulator said.

Comco explained that it had launched the probe in October 2007, and determined that the companies in question had from 2003 to 2007 coordinated certain fees and surcharges for air freight passing through Switzerland.
  
"Such horizontal deals constitute serious offences," it said.

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PRICE FIXING

France slaps ‘delivery cartel’ with €672m fines

France's competition authority on Tuesday slapped €672.3 million in fines for price-fixing on 20 package shipping firms, including the local subsidiaries of international market leaders such as DHL, FedEx and TNT.

France slaps 'delivery cartel' with €672m fines
Photo: AFP

France's competition authority on Tuesday slapped €672.3 million in fines for price-fixing on 20 package shipping firms, including the local subsidiaries of international market leaders such as DHL, FedEx and TNT.

The market regulator found the companies, plus a trade association linking them, had been involved in discussions on price hikes and that many of the firms had also discussed a common method to apply a fuel surcharge on package shipping between 2004 and 2010.

“Roundtables were regularly organised before and during rate hike campaigns, which allowed the firms to harmonize their rate positions and secure their commercial negotiations,” said the Competition Authority in a statement.

“The discussions were held in secret and no official records were made,” it added.

Chronopost, the delivery company run by the French postal system now known as DPD France and Geodis, owned by the state-held SNCF rail operator were also caught up in the price fixing ring.

Those two companies, plus DHL and TNT, were considered to be among the eight main members of the price-fixing ring, which accounted for 71 percent of the market.

The regulator said the package delivery sector is “a key activity for French industry”.

It said manufacturers are heavily reliant on the shipment of packages to each other and clients, not to mention online retailers who were completely dependent upon them to deliver goods to customers.

“Nearly the entire fabric of French industry and commerce was affected by the price-fixing practices including the e-business sector which was booming,” said the Competition Authority.

The fine was the second largest handed down by the Competition Authority in the past 15 years.

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