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Consumer law/free movement of goods: Competition rules in the postal sector

United Kingdom
10/02/1998
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Competition rules in the postal sector

The Commission has issued a Notice in which it sets out its approach in attempting to ensure a "level playing field" in postal services in the Community. The Notice complements the recent framework Directive on liberalising the postal services.

  • Market definition Collection, sorting, transport and delivery of mail are essentially separate activities which are combined in the monopoly service in many Member States.
  • Dominance Monopoly postal operators with the sole right to distribute items reserved by Member States (in order to maintain a universal service for all) are by definition in a dominant position as defined by Article 86 of the Treaty. They must not therefore hinder rivals from competing fairly in the non-reserved postal segments.
  • Cross-subsidisation Cross-subsidisation will not be allowed in order to prevent monopoly holders from undercutting competitors' prices. Transparent accounting methods will have to be used.
  • Cross-border mail The maintenance of any exclusive or special rights for postal operators must be justified under the EC Treaty.
  • Supervision National regulators must be independent and not at the same time provide postal services in competition with rival private companies.

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