FedEx/Post Office Deal to be Reviewed
April 17, 2001
After complaints from FedEx competitors, the Postal Service inspector general's office says it will look into a contract between FedEx and the Postal Service.
According to the Associated Press, the Justice Department said last week that it is looking at possible antitrust implications of the FedEx contract, which provided FedEx air transport for certain postal services and allowed FedEx to put drop boxes at post offices.
During a House Government Reform Committee hearing on Postal Service performance earlier this month, executives of three FedEx competitors testified in protest against the deal.
"Mail users, taxpayers and our companies will pay a high price for the fatally flawed contract between the Postal Service and FedEx," said the statement from FedEx's competitors. "In scrapping the present system - which distributed responsibility among several carriers - USPS will incur higher costs. Service standards will decline," they said in a joint statement.
The Postal Service recently notified Emery, one of the carriers testifying against the deal, that it was contracting its postal contract. Emery is appealing an unsuccessful court challenge to the contract.