UPS Challenges CCI Decision Allowing Publishers to Cross-Examine India Executive in Antitrust Case

New Delhi:

UPS has petitioned an Indian court to overturn the antitrust watchdog's decision allowing book publishers to cross-examine its India executive, contending that such action constitutes "coercion" as the company has already been exonerated of wrongdoing, according to court documents.

An Indian antitrust investigation report released last year concluded there was "no evidence" that FedEx, UPS, Aramex and DHL engaged in price collusion, contrary to allegations made by a book publishers' association. However, in an unusual development this May, the watchdog permitted the Federation of Indian Publishers to directly cross-examine courier executives.

Allowing complainants to interrogate companies is uncommon in Indian antitrust proceedings, and UPS has requested the Delhi High Court to nullify the Competition Commission of India (CCI) decision, arguing it was issued without providing "cogent reasons" justifying its necessity.

The book publishers' "cross-examinations is nothing more than a fishing and roving expedition and should not be permitted," UPS Express Private Limited stated in an October 8 filing, which is not public but was examined by Reuters on Thursday.

The order will "vitiate the effect of the DG's investigation which has lasted around three years," the company added.

DHL, FEDEX, ARAMEX EXECUTIVES TO BE CROSS-EXAMINED

UPS indicated in a statement to Reuters that it continues to fully cooperate with the CCI regarding this matter.

Abbas Panju, India managing director of UPS Express who faces cross-examination, did not respond when contacted for comment.

The CCI and the publishers' federation did not immediately reply to requests for comment. The federation represents numerous Indian publishers including S Chand and Rupa Publications, as well as certain foreign groups like Pan Macmillan.

The case is scheduled for hearing on November 24.

With the expansion of online shopping, many foreign and domestic companies are optimistic about the Indian courier and parcel delivery market, which is projected to grow 11% annually in value to $14.3 billion by 2030, according to Mordor Intelligence.

Referring the case back to CCI investigators could become problematic for the logistics industry.

CCI senior officials in May found merit in the publishers' group complaint, which argued that cross-examination of delivery company executives should be permitted since investigators relied on verbal statements to clear the companies of wrongdoing.

The CCI has also mandated cross-examination of senior executives from India's DTDC Express, DHL Express, FedEx and Aramex, though these proceedings have yet to begin or conclude, according to a source with direct knowledge of the matter.

DHL informed Reuters in August that it was cooperating with the CCI, while the other companies have not provided any comment.