UPS: DOT RULING ON DHL LEAVES DOOR OPEN FOR FURTHER ACTION

UPS: DOT RULING ON DHL LEAVES DOOR OPEN FOR FURTHER ACTION    United Parcel Service said it was disappointed by the U.S. Department of Transportation’s decision allowing DHL Worldwide Express to operate as a foreign freight forwarder in the United States.
   At the same time, UPS welcomed the DOT’s decision to allow raising the issue in the future should evidence warrant such action.
   UPS challenged the license on grounds that DHL World Express was controlled by Deutsche Post, the German postal service.
   UPS said Deutsche Post has a history of “abusing its monopoly position through cross subsidies.”
   Last March, the European Commission ruled that Deutsche Post abused its monopoly power on first-class mail, UPS noted.
   UPS’s challenge raised public awareness “of the unfair competitive practices of Deutsche Post,” the Atlanta-based express carrier said.
   UPS said a portion of the DOT’s ruling showed the department agreed with UPS over the risk of market distortion and unfair trading activity when a government-owned entity attempts to compete against private companies.
   “DOT’s ruling is important because it leaves the door open for further action,” said UPS spokesman Tad Segal.