Deutsche Post's monopoly is not infringement of German constitution

The Federal Constitutional Court of Germany has ruled that the monopoly held by Deutsche Post, the German postal service, is not an infringement of the German constitution. Six other companies which had hoped to break into the market for postal services had complained about the exclusive licence held by Deutsche Post for the delivery of letters and catalogues, claiming that the sole purpose of the licence was to protect Deutsche Post against competition and to increase the value of shares in the company.

According to German law, Deutsche Post has the exclusive right to deliver letters and catalogues weighing up to 100g until the end of 2005. After this, the company will continue to hold an exclusive licence for the delivery of letters and catalogues with a weight of up to 50g until the end of 2007. The Federal Constitutional Court has said that this is to ensure a smooth transition from the monopoly to the new system with competition on the market.