Copyright Journal of Commerce, Inc.
Journal of
Commerce - JoC Online
October 11, 2000, Wednesday
SECTION: LOGISTICS; Pg. WP
LENGTH: 880 words
HEADLINE:
Postal Service-FedEx alliance raises House questions about antitrust
BYLINE: JoC ONLINE
BODY:
Three senior members of the U.S. House of Representatives have raised
antitrust questions about the strategic alliance between the U.S. Postal Service
and Federal Express, and have asked the Justice Department to review the deal.
Reps. Dan Burton (R-Ind.) and John McHugh (R-N.Y.) sent a letter on Oct.
3 to Attorney General Janet Reno questioning if the postal service's immunity
from antitrust "is appropriate in the modern postal
marketplace.' Burton is chairmen of the House Government Reform
Committee and McHugh is chairman of the House Postal
Subcommittee.
They supported a letter written by Rep. Henry Hyde
(R-Ill.), House Judiciary Committee chairman to Reno on Sept. 18 asking that the
Justice Department examine the antitrust implications of the USPS-FedEx link-up.
"Although our outdated body of postal laws grants immunity to the Postal
Service, we share Chairman Hyde's belief that there are important competition
policy concerns arising out of this proposed alliance with FedEx," McHugh and
Burton wrote.
Reno has not indicated if the Justice Department will
review the proposed alliance.
The USPS-FedEx alliance came to light in
early September. The postal service would use the FedEx air fleet to deliver
Priority and Express Mail. FedEx would be able to use mail carriers for delivery
of residential packages less than 70 pounds.
If the Justice Department
investigates the alliance, 1/4 Our response would be that any agreement we
negotiate with the postal service would benefit consumers, 3/8 said FedEx
spokesman Jess Bunn.
Bunn said that talks continue between FedEx and the
postal service. He gave no date when talks would conclude. "We continue to talk.
There's a lot of work to be done, Bunn said.
LOAD-DATE: October 12, 2000
