Ceska posta seeking monopoly for direct mail

Czech state-run postal services provider Ceska posta wants its monopoly to be extended to cover also direct mailing, daily Hospodarske noviny writes today.

The company wants the change to be included in the amendment to the law on postal service that the Chamber of Deputies economic committee will discuss on Wednesday.

Ceska posta would thus get rid of its only competitor Mediaservis, which has about a 10 per cent market share at present.

The current Czech legislation does not clearly specify whether or not the service is part of Ceska posta’s monopoly, which enabled Mediaservis to enter the market.

But Ceska posta feels harmed by its rival’s conduct and demands a clear definition of direct mailing in the law. Ceska spokesman Ladislav Vancura told Hospodarske that controlling the market for direct mailing would be an important and reliable source of revenues for the company.

“We would have to solve it by means of a complaint with the European Commission,” Mediaservis executive Michal Koliandr told the paper, adding the Czech Republic might face complaints and possible arbitrations because of such monopoly.

The Czech anti-monopoly office UOHS will be closely watching the process of approving the amendment to the law on postal service, Kristian Chalupa of the UOHS press section told the daily.

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