Brazil: Correios calls monopoly, exclusivity
The Brazilian mail service Correios (Empresa de Correios e Telegrafos) is on the verge to see the Supreme Federal Court to confirm its monopoly, and even expand it from letters & annexes to packages and mail overseas. The anti monopolistic case under discussion was filed in 2003 by the private couriers association Abraed, that casts eyes in a market worth R$10bil, with Correios having sales of R$8.5bil in 2005 (R$7.6bil in 2004). What complicates the matter is the Brazilian Constitution establishes to the government the responsibility of provide the postal and air courier services, seen as a public service.
Several interpretations would inevitably follow, but Correios itself defines its role as exclusivity, not monopolistic, as a way to secure the service in all municipalities that would not be met by private companies. Abraed and the sister association Sineex, wait for the Supreme Court decision, and comment if the tumbling of the Correios monopoly fails, private couriers will be hindered as large part are small & medium sized companies. International couriers, as Fedex and DHL, have not a bright outlook either, as it is likely the missing of part of their US$120mil turnover. It is open, however, a partnership with Correios, as the one with TNT. Litigations involving Correios and private companies is long history and some of the cases involved Logistech, EBX, Total Express and others.
