Mail service deregulation urged on Japan Post privatization

Japan’s Fair Trade Commission has submitted a report recommending deregulation to allow private companies to take part in mail services Japan Post monopolizes, FTC officials said Friday.

Japanese law requires a mail service provider to ensure uniform service throughout Japan with 100,000 post boxes, effectively barring private companies from undertaking such services, the report said.

When the Japanese postal system starts being privatized in October 2007, private companies should be encouraged to undertake mail services in urban areas where such services can pay, it said.

The FTC report said Japan Post should open its nationwide mail delivery network to new entrants into mail services.

Based on the report, the FTC plans to give a guideline for applying the antimonopoly law to mail services.