Competition Investigation regarding parcel delivery and pick-up services
|Investigation into||Parties in the parcel delivery and pick-up sector|
|Case opened||22 November 2019|
|Case closed||20 January 2021|
This investigation considered whether there are agreements between providers of parcel delivery and pick-up services which establish minimum prices and impose online sales restrictions and have as their object or effect the prevention, restriction or distortion of competition in the UK and/or European Union.
|Relevant legal provision(s)||
Section 2 of the Competition Act 1998 (the ‘Act’) and Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’).
Ofcom has decided to close this investigation into agreements between certain providers of parcel delivery and pick-up services.
Ofcom has finite resources, and we must weigh up the likely benefits of continuing an investigation against the resources that would be required, and the comparative benefits of using those resources in other ways. In this case, we have carefully considered the options available and have concluded that Ofcom’s resources would be better directed towards other matters.
In reaching our decision to close this investigation, we have not reached a conclusion on the merits of the case, nor have we made a finding on whether there has been a breach of competition law.
Ofcom has opened an investigation under the Act into agreements between providers of parcel delivery and pick-up services which it suspects establish minimum prices and impose online sales restrictions.
Section 2 of the Act prohibits agreements between undertakings that have as their object or effect the prevention, restriction or distortion of competition, where this may affect trade within the UK (the ‘Chapter I prohibition’). Similarly, Article 101 of the TFEU prohibits agreements between undertakings that have as their object or effect the prevention, restriction or distortion of competition, where this may affect trade between Member States.
The purpose of the investigation is to establish whether there has been one or more infringements of the Chapter I prohibition and/or Article 101 of the TFEU by operators in the business parcel delivery sector.
This investigation will follow the procedures set out in our published Competition Act Enforcement Guidelines (PDF, 1007.1 KB). In the first phase of the investigation, Ofcom will gather further information using its powers under the Act. The analysis of this information will help inform Ofcom’s view on how to proceed further with the investigation.
This investigation is at an early stage and we have not reached a view on whether there has been a breach of competition law. If Ofcom finds there is sufficient evidence of one or more breaches, we will issue a Statement of Objections to the relevant party or parties. We will keep this page updated with key developments as the case progresses.
Samuel Hinkley (email: firstname.lastname@example.org)