The European Commission is to launch an in-depth investigation to examine whether the proposed acquisition of TNT Express by FedEx Corporation is in line with the EU Merger Regulation.
Both companies are major players on the world market for courier services. The Commission is concerned that, in a number of European markets for international express shipments and normal (so-called “delayed”) small consignments, the merged entity will encounter only two remaining players: UPS and DHL.
This could potentially lead to higher prices for business customers and consumers. The Commission now has 90 working days, until December 8, 2015, to examine the proposed acquisition and to determine whether these initial concerns are well founded.
The fact that a thorough inquiry is being undertaken is in line with EU competition policy, and says nothing about the final outcome.
Margrethe Vestager, Commissioner responsible for competition policy, stated the following in this context: “all businesses, and especially electronic commerce, rely heavily on affordable and reliable courier services, and many consumers rely on these services for fast and safe delivery of the goods they have purchased.
The Commission should then also ensure that the acquisition of TNT by FedEx does not impede effective competition and would not result in higher prices for consumers.”
