Deutsche Post response to speculation that it may face fine running into the millions

Bonn, 29 April 2002

The newspaper Frankfurter Allgemeine Zeitung (FAZ) reports in today’s issue that Deutsche Post faces being served with a notice of a high fine imposed by the EU, probably as early as May but at the latest in June.

The newspaper gives state aid allegedly granted to the Group as the reason. The company had already had to pay a fine of EUR27 million last year for cross-subsidising its parcel service from its mail monopoly, the newspaper says.

Deutsche Post has the following comment to make on the above:

The FAZ’s account is wrong on several key points. First of all, Deutsche Post has never availed itself of state aid. On the contrary, up to 1996, Deutsche Post paid billions in the form of revenue-based levies and, subsequently, dividend payments to the Federal Government. Secondly, Deutsche Post did not have to pay any fine last year for cross-subsidising its parcel service from its mail monopoly. On the contrary: in anti-trust proceedings at the EU initiated by our competitor UPS, it was precisely the charge of cross-subsidisation that was dismissed. The fine of EUR24 million (not EUR27 million) that was imposed at the time related to unlawful loyalty rebates granted by Deutsche Post to its customers and not to any finding of cross-subsidisation.

The FAZ’s account is wrong on a further point as well. The newspaper states that the Italian post office also faces similar proceedings. What is correct is that the proceedings against the Italian post office have already been concluded. In this case, the EU did not impose any fine or order that state aid be repaid to the state.

Deutsche Post anticipates that a ruling will also be made in the proceedings pending against the Federal Republic of Germany (not against Deutsche Post) in respect of state aid that is positive for the company, as the charge of cross-subsidisation is no longer applicable since the EU anti-trust ruling.

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