Postal monopoly for Spanish government departments may end

The Spanish government has been warned by its legal department that the monopoly enjoyed by state-owned postal operator Correos, for contracts to provide postal and telegraphy services to governmental departments, may be illegal. Correos has been allocated a number of these contracts without having to bid against other companies, despite the fact that its legal monopoly only applies to national and international letters and cards weighing 350 grammes or less. The entire postal sector in Spain, along with the rest of the EU, is due to be liberalised in 2009 in any case, although recent steps taken by the government seem to suggest that it wants to preserve Correos’ monopoly.