The German postal regulator, the Federal Network Agency (Bundesnetzagentur), has dropped a caseagainst Deutsche Post over price discounts for large customers, prompting criticism from
competitors.As of July 1, 2010, the postal operator significantly increased its ‘partial workload’ discountsfor customers or competitors who deliver pre-sorted mail directly to its sorting centres, thusreducing its own workload and operating costs. It justified this move with the introduction of VATon mail services.
The agency announced that its investigation into these higher discounts had concluded that theydid not distort competition. “The partial workload prices do not contain any discounts that abuseor impact on competition and do not conflict with the ban on discrimination since they are offeredto all customers at the same level,” said regulator Matthias Kurth.
The agency, which launched the investigation following complaints from alternative postaloperators, stressed, however, it would continue to monitor Deutsche Post to ensure its pricing didnot include any unjustified cross-subsidisation which would impact on the competitive potential fornew entrants. “We would look very critically at any possible price increases for privateconsumers,” Kurth stressed.
In response, the German Couriers Association (BdKEP) accused the regulator of “burying postalcompetition” by permitting discounts of up to 35% for large customers, and said it would appealagainst the decision. “The prices are so low that no further competition can develop. It isprobable that the market share of competitors will drop below the 10% level,” claimed theassociation, which represents smaller companies.
The International Express and Courier Services Association (BIEK), representing majorinternational operators, said it was disappointed at the decision. The large corporate discountseffectively passed on the overall costs of mail operations to private consumers who had to pay 55cents for a standard letter. The decision of the Bundesnetzagentur is against consumer interests.With the high standard tariff, consumers are subsidising the corporate discounts of Deutsche Post,which is using them to keep competitors out of the market,” declared BIEK president GunnarUldall.
