Justice Department Investigates FedEx and UPS for Antitrust Conspiracy

Jan. 14, 2011
Reuters is reporting that FedEx and UPS are under investigation by the Department of Justice over allegations of antitrust activity

According to a recent Reuters report, the nation’s two leading package delivery companies, FedEx and UPS, are being investigated by the U.S. Department of Justice over allegations that they illegally tried to prevent customers from using third-party shipping consultants and negotiators to save money. The DOJ is looking into whether FedEx and UPS broke antitrust laws.

The allegations are a result of a lawsuit filed last summer by AFMS Logistics Management, a provider of small package contract negotiation services.

FedEx and UPS are said to be fully cooperating with the ongoing investigation.

The Reuters story quotes Susan Rosenberg, a UPS spokeswoman, who points out that FedEx and UPS compete aggressively and that any assertion that they conspired was “a bit outrageous.”

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