Two US Senators Request Antitrust Review Of UPS-DHL Deal
Last update: 8/4/2008 2:37:15 PM
By Brent Kendall
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Two U.S. senators asked federal regulators Monday
to take a close look at a 10-year agreement between United Parcel Service
Inc. (UPS) and DHL Express that makes UPS the exclusive provider of air
shipping for DHL's North American package-delivery service.
Sens. Herb Kohl, D-Wis., and Orrin Hatch, R-Utah, the leading members of a
Senate antitrust subcommittee, said in a letter that the deal "raises
important antitrust and competition issues" and should be reviewed
carefully.
The senators sent the letter to regulators at the Department of Justice and
the Federal Trade Commission.
Kohl and Hatch said they have not reached a conclusion on the deal's
legality, but they said the deal raises question about DHL's ability to
compete against UPS.
The senators also said the deal would have a "devastating financial impact"
on DHL's current air transport providers, ABX Air and ASTAR.
UPS and DHL are the second and third largest overnight delivery services in
the United States, behind Fedex Corp. (FDX).
The two companies announced their deal in May.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
[email protected]
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(END) Dow Jones Newswires
August 04, 2008 14:37 ET (18:37 GMT)
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