Deutsche Post rejects proposal to relax letter mail licence

Calls by two federal states for the letter mail market to be opened up early put nationwide provision of postal services at risk, says Deutsche Post.

Deutsche Post has soundly rejected the calls made by the German federal states of Hesse and Lower Saxony for the exclusive letter mail license to be relaxed early, saying that the frequently repeated claims that the current legal situation is hindering competition and is putting customers at a disadvantage do not reflect reality and are politically motivated.

For years now, license holders in Germany have been able to extend their operations even into the area that is reserved for Deutsche Post. The German letter mail market is one of the most liberalised postal markets in the EU. Germany also has a head start on most other countries in respect of concrete specifications regarding full market liberalisation as from January 1st, 2008.

In all the EU Member States, the revenue generated from the exclusive license is required to finance those parts of the provision of nationwide postal services that do not cover costs. Against this backdrop, the fact that it is precisely the representatives of two federal states included in the provision of nationwide service who are calling for this funding to be abolished early is incomprehensible, says Deutsche Post.

If market liberalisation were to be brought forward, this would put both Deutsche Post and its competitors at a disadvantage, because foreign postal companies would have free access to the German market without having to face competition in their respective domestic markets. Deutsche Post calls for harmonised liberalisation throughout Europe which would not place Germany as a location for business and industry at a disadvantage.

Deutsche Post Monopoly Set to End
December 14, 2004 — [National Post]
"Frankfurt Deutsche Post AG, Europe's biggest postal service, would lose its letter-delivery monopoly by the end of 2005 and face more competition under a bill drafted by Germany's opposition-led states including Hesse and Lower Saxony. Deutsche Post, which is 62.5% state-owned, has until 2008 the exclusive right in Germany to deliver letters weighing less than 100 grams. Competitors including the German unit of United Parcel Service Inc., the world's biggest package delivery company, and the European division of FedEx Corp., the second-biggest in the U.S., said in May that they support a looser interpretation of postal service rules."

Deutsche Post press release – 13 Dec 04
Calls by two federal states for the letter mail market to be opened up
>early put nationwide provision of postal services at risk
>
>Gradual, harmonized market liberalization throughout the EU is
>indispensable
>
>Deutsche Post soundly rejects the calls made by the German federal states
>of Hesse and Lower Saxony today, Monday, for the exclusive letter mail
>license to be relaxed early. The oft-repeated claims that the current legal
>situation is hindering competition and is putting customers at a
>disadvantage do not reflect reality and are pure demagoguery.
>
>For years now, license holders in Germany have been able to extend their
>operations even into the area that is reserved for Deutsche Post. The
>German letter mail market is one of the most liberalized postal markets in
>the EU. Germany also has a head start on most other countries as regards
>concrete specifications in respect of full market liberalization as from
>January 1st, 2008. In all the EU Member States, the revenue generated from
>the exclusive license is needed to finance those parts of the provision of
>nationwide postal services that do not cover costs. The fact that, against
>this backdrop, it is precisely the representatives of two federal states
>included in the provision of nationwide service who are calling for this
>funding to be abolished early is incomprehensible.
>
>If market liberalization were to be brought forward, this would put both
>Deutsche Post and its competitors at a disadvantage, for in this case
>foreign postal companies would have free access to the German market
>without having to face competition in their respective domestic markets.
>Deutsche Post calls for harmonized liberalization throughout Europe which
>would not place Germany as a location for business and industry at a
>disadvantage.

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