Lithuanian Post fined EUR 23,188 for abuse of market dominance

Lithuania’s competition watchdog has imposed on Lietuvos Pastas (Lithuanian Post), the state-run postal service operator, a fine of 80,000 litas (EUR 23,188) for abuse of its dominance on the domestic market.

Having considered the conclusions drawn by the investigation into the compliance of Lietuvos Pastas with the requirements of competition legislation, the Competition Council has ruled that the company has breached the article on the abuse of market dominance.

The council has set out its opinion that Lietuvos Pastas has abused its dominance on the market of reserved postal services and sought to drive its competitors out from the bill printing, folding and enveloping market.

The investigation was launched late in 2004 at the request of BMK (Biznio Masinu Kompanija, Business Machines Company), the domestic office machinery and equipment provider, which is also active on the office printing and copying systems and services market.

On Jan. 1, Lietuvos Pastas unified the rates of its services to impose a fixed rate of 0.85 litas per each payment accepted irrespective of the scale and the number of payments. Previously companies were charged a fixed percentage rate of the total amount paid.

Lietuvos Pastas operates 11 branches and renders its services through 10 regional central post offices, 34 district offices, 944 post offices (228 in urban areas and 716 in rural areas), 10 postal agents and 6 mobile post offices.

The postal service operator is 100-percent controlled by the state.

(EUR 1 = LTL 3.45)

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