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German regulator probes Deutsche Post price-dumping claims

DPWN

The German postal regulator is investigating allegations that Deutsche Post World Net isprice-dumping in the mail sector to defend its dominant market position. DPWN has denied the

claims.

The allegations focus on the market for pre-sorted mail that was liberalised last year. Privateoperators are now allowed to act as postal consolidators by collecting and pre-sorting mail, andthen feed it into DPWN’s German postal network for final delivery.

The Bundesnetzagentur (“Federal network agency”) has confirmed media reports that it haslaunched an investigation into whether DPWN is deliberately trying to price competitors out of thismarket with low rates. Competitors claim that a DPWN subsidiary is unfairly competing by offeringlow rates to provide this service for regional public bodies. DPWN confirmed that the Deutsche PostIn Haus Service offered this service but denied the price-dumping claims.

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