Thursday, October 2, 2008

Stop Me If You've Heard This One...

DMNews today reports on a contract between 2 global leaders in the same category in which one wants to outsource a key service to the other in North America only. In its defense, the company that is being awarded the contract argues that since the deal is a vendor contract, and not a merger or acquisition, it is not subject to antitrust laws. And, furthermore, it claims there will be "vigorous" competition between the 2 companies.

Sound familiar? Anyone else think the folks in Sunnyvale and Mountain View will be keeping a close eye on this one?

Here's the quick and dirty from the DMNews article:

"In a recent letter to the Department of Justice, US Senators Herb Kohl, D-WI, and Sherrod Brown, D-OH, questioned a proposed transport agreement between UPS and DHL, saying the deal would violate antitrust laws.

This comes as an additional hurdle to the proposed contract, which is still being negotiated, and under which UPS would provide air transport services for DHL's North American business for 10 years. DHL said two independent airlines currently provide the services.

Malcolm Berkley, a spokesman for UPS said the deal is a vendor contract and the company does not believe it violates federal antitrust laws.

“This agreement is in no way a merger or an acquisition,” he said. “We will compete vigorously with them in other aspects.”

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