Omniva submits complaints to European Commission
Omniva Group, International technology and logistics group, has submitted complaints to the European Commission concerning alleged incompatible State aid to the national postal operators in Latvia and Lithuania. The company is asking for an independent assessment of whether the current frameworks for financing Universal Postal Services (UPS) provide sufficient safeguards for transparency and fair competition in commercial postal, parcel and logistics markets.
The complaints focus on how publicly compensated Universal Postal Service activities interact with commercial operations in increasingly competitive markets. Omniva is seeking greater clarity regarding cost allocation, separation of publicly compensated and commercial activities, and whether the existing compensation and regulatory frameworks provide sufficient safeguards against potential cross-subsidisation.
“We fully recognise the importance of Universal Postal Services and the need to compensate services provided in the public interest. Our concern is not the existence of this compensation, but whether the current frameworks provide sufficient transparency and safeguards to ensure that public funding does not create unintended advantages in competitive commercial markets,” said Martti Kuldma, CEO of Omniva Group.
The submissions follow broader developments in both markets. In Latvia, Omniva and other market participants have previously raised concerns about the extension of the existing Universal Postal Service arrangement without a new competitive selection process. In Lithuania, Omniva withdrew from the Universal Postal Service provider selection process after concluding that the remaining timeline and lack of clarity did not allow a potential new provider to prepare responsibly for the transition.
These developments, together with broader questions regarding public compensation, cost allocation and competition in commercial parcel markets, contributed to Omniva’s decision to seek an independent European-level assessment.
“We believe that competition, innovation and equal market conditions benefit customers, businesses and society as a whole. Where legitimate questions arise regarding the interaction between State support and commercial competition, they should be assessed independently under European Union rules,” added Kuldma.
