Royal Mail fined £40m

16 December 2015

Royal Mail Royal Mail has agreed to pay up £40m so they can settle a probe by competition authorities into their French arm of the business. They were among 20 delivery companies, who combined, were fined £487m for being in cahoots over price increases over a six-year period.

FedEx and DHL's French firms were also involved in this nonsense as well as the Royal Mail owned General Logistics Systems (GLS) business.

France's Autorite de la Concurrence said, regarding this case, they'd found that businesses had colluded over prices in secret meetings from 2004 to 2010. These meetings and subsequent price rises had been particularly damaging to small businesses that use package delivery services.

They found that, in one instance, the businesses had agreed to a system which would see them passing on higher diesel costs to customers. In another, they found that some companies had been planning an annual 5% price increase, but after these meetings, decided on a raise of 7% instead.

Royal Mail said: "Royal Mail recognises the absolute need to comply with European and national competition law and the necessity to prevent infringements. It has implemented an enhanced compliance programme in GLS France in order to strengthen the culture of competition law compliance."

TOPICS:   Government

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