Canada Post next for United Parcel
United Parcel Service Canada Ltd. has delivered a new shot at Canada Post, emboldened by a European Commission decision forcing Deutsche Post to repay about $840 million to the German government for using monopoly profits and state aid to subsidize its commercial courier operation.
The ruling “has significant adverse implications for Canada Post, which faces a similar claim from UPS under the provisions of NAFTA,” the courier company says.
Both Deutsche Post and Canada Post have government-mandated monopolies on letter mail and also compete with private-sector companies in the courier business. UPS contends Canada Post abuses its postal monopoly to support its Purolator and Priority Courier operations.
“The EC’s decision against Deutsche Post sends a clear message for other postal monopolies such as Canada Post that it is not acceptable for postal operations to use its letter mail monopoly to subsidize its courier business,” says Susan Webb, UPS Canada spokesperson.
