Deutsche Post rejects EU allegation It misused government subsidies

German postal services and logistics company Deutsche Post AG said Wednesday it rejects the allegation made by the European Commission that it misused German government subsides.

The European Commission Wednesday said it has opened an investigation to probe all public funds granted to Deutsche Post since 1989.

Deutsche Post spokesman Dirk Klasen said it was “incomprehensible” that Germany and Deutsche Post – which are leading European postal service liberalization – were being investigated by the commission.

E.U. law states that every country’s national post company is bound to serve all regions in that country, including those which are unprofitable because they are hard to reach or are sparsely populated.

The commission said earlier Wednesday that Deutsche Post’s competitors allege the former monopoly used this money to expand commercial activities and to sell services too cheaply to its subsidiaries DHL and Postbank AG, which is banned under E.U. law.

Klasen said Deutsche Post has, by replying to requests for information, proven over and over this is absurd.

Deutsche Post doesn’t get public funding, said Klasen, adding it isn’t clear which public support the commission refers to.