12-Jan-2011 10:43 AM

FedEx and UPS involved in federal antitrust inquiry

FedEx and UPS are facing a court hearing later in Jan-2011 regarding claims they colluded to prevent shipping consultants from negotiating lower rates on behalf of their clients (Post And Parcel, 11-Jan-2011). The civil antitrust lawsuit was initially filed with the US District Court in Los Angeles in Aug-2010 by lawyers on behalf of shipping consultancy AFMS Logistics Management Group, with additional allegations added in Oct-2010. A UPS statement issued on 10-Jan-2011 confirmed the antitrust division of the Department of Justice had requested information on 19-Nov-2010, as part of a “preliminary investigation of UPS’s policy for interacting with third-party negotiators”. A court date has been set for a judge in the US District Court to hear UPS and FedEx submissions to dismiss the case on 31-Jan-2011. If the judge rules not to dismiss the case, a trial would be held in Sep-2011.