Federal Network Agency dismisses allegations directed at downstream access

Following a review lasting several months, the Federal Network Agency has declared the existing agreements between Deutsche Post In Haus GmbH and various ministries of the state of Bavaria for provision of downstream postal access as legal and not objectionable. In response to complaints of Deutsche Post competitors in the spring of 2006, the authorities had initiated an abuse proceedings against Deutsche Post and its subsidiary, Deutsche Post In Haus Service GmbH. Competitors had accused Deutsche Post of itself engaging in activities through its subsidiary in the so-called shipment consolidation area and of not covering costs in its pricing, thereby obstructing the development of competitors.

After the authorities did a check of the necessary calculation documents, the accusation of offering dumping prices was revealed as unfounded. The same was true for the argument that the subsidiary makes use of the infrastructure and sales organization of Deutsche Post. Here, upon carrying out local inspections at four DP In Haus Service GmbH service centers, the Federal Network Agency was unable to find any evidence. Not only does the company have its own infrastructure and automation, but it draws upon its own sales organization as well.

This marks the failure of yet another attempt by Deutsche Post competitors to use the Federal Network Agency as a competitive tool against the leading provider of postal services in Germany. Not too long ago, in November 2006, a parcel service likewise failed in its effort to lodge complaints with the Federal Network Agency accusing Deutsche Post of anti-competitive behavior in adjusting its parcel prices.