Deutsche Post Competitors Mobilize to Protest Monopoly Extension Logistics

Deutsche Post Competitors Mobilize to Protest Monopoly Extension Logistics
From HANDELSBLATT (ENGLISH VERSION), May 9th, 2001

HB/sms BERLIN. Deutsche Post AG’s new competitors are stepping up
the pressure on the government to abandon its plans to extend the
logistics giant’s monopoly on certain classes of letter delivery.
Under current law, Deutsche Post’s exclusive right to deliver
letters of up to 200 grams in Germany is due to run out at the end of 2002. But
Economics Minister Werner Mü ; ller (independent) believes that full
postal-market liberalization should be carried out on a European Union-wide basis.
In view of the slow progress made by Germany’s EU partners, he recently
announced plans to amend the law to extend Deutsche Post’s monopoly until 2007.
Now Deutsche Post’s new rivals are saying they will lodge a
complaint with the Federal Constitutional Court if the monopoly extension goes
ahead. With the support of DIHT, the German federation of chambers of trade and
commerce, they have formed an action forum under the name ” ; More Color in the
Post Market” ; – ; a reference to Deutsche Post’s associations
with yellow, the color it uses in all its logos.
Over the past two years, the partial liberalization of Germany’s
postal market has brought a boom in the setting-up of new companies
providing courier, transportation and logistics services. Some 30,000 new jobs have
been created. So far, Deutsche Post’s new rivals have been denied permission to
deliver items above 200 grams, unless they provide an extra service such as
same-day delivery. But according to the action forum, the new companies were
set up in anticipation of a full liberalization of the postal-delivery market.
With this in mind, they made a number of investments whose purpose will be
wiped out if full liberalization is delayed.
Furthermore, they point out that Deutsche Post has gone from being a
state monopoly to a stock corporation that should be capable of succeeding
in a competitive environment.
Copyright 2001 Handelsblatt. Source: World Reporter (Trade Mark) –
FT McCarthy.HANDELSBLATT (ENGLISH VERSION), 09th May 2001