Aid for Deutsche Post

United Kingdom
31/07/1999
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The Commission has decided to start formal proceedings relating to possible State aid granted to Deutsche Post. Private competitors have complained to the Commission that Deutsche Post subsidised its non-reserved services using profits from its mail monopoly. They also allege that Deutsche Post has used the revenue from its monopoly to finance take-overs in recent years.

Deutsche Post is required by law to provide basic mail and parcel services throughout Germany. It offers other services, especially for the business community, on a purely commercial basis and under no obligation from the State. To enable it to provide an economically viable basic postal service throughout the country, Germany granted it a monopoly for certain mail services and also fixes the price of those basic services. Under EC regulations, revenue from a reserved field of activity must balance the specific cost of the public service obligation. If revenue from this basic mail and parcel service is greater than cost, this may constitute State aid. (IP/99/530)

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