Deutsche Post probed for alleged dumping in mail ops

German regulator Federal Network Agency has started a formal investigation into Deutsche Post AG for allegedly dumping in its mail operations, Frankfurter Allgemeine Zeitung said, citing sources.

Based on complaints filed with the agency, it said Deutsche Post had attempted to curtail competition in the area of letter collection, sorting and delivery through its wholly-owned unit Deutsche Post In Haus Service GmbH (DPIHS).

It is alleged to have offered bundling of mailshots from federal agencies at special conditions, matching the offers from competitors for such services.

Lawyer Christian von Ulmenstein, who represent the complainants, told the newspaper that by offering these extra services plus the regular offerings in-house, Deutsche Post has curtailed competition in the sector and abused its market position.

A spokesman for Deutsche Post denied the complaints, the report said.

Deutsche Post has until mid-February to comment on the allegations, and Federal Network Agency expects to make a final ruling within two months.

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Deutsche Post investigated over price dumping claims (Netzagentur pruft Dumping-Vorwurfe gegen Deutsche Post)
HANDELSBLATTEuropean Intelligence WireHandelsblattHandelsblatt, p 20 02-08-2006

The federal network agency in Germany is investigating claims that Deutsche Post, the German national postal services provider, has been carrying out price dumping activities for items sent by letter post. A spokesperson for the agency confirmed that it would be examining whether Deutsche Post had been charging too little for its services, thereby putting rivals at a disadvantage. Deutsche Post has rejected the accusations.

The row concerns the collection and pre-sorting of items sent by letter post. Rivals complained that Deutsche Post was offering discounts on the cost of postage for bulk deliveries that had been pre-sorted. The German media also reported that the postal group had drawn up framework contracts offering special rates if federal states collected together bulk deliveries and pre-sorted them. Deutsche Post declared that it was not involved in price dumping and said that it would clarify its position to the agency in order to prove that the claims were untrue.

Abstracted from Handelsblatt