EU Sues France To Speed Up Postal Deregulation
The European Union sued France Wednesday for failing to deregulate its postal market.
The Commission said France must open up the market for letters weighing more than 100 grams and establish an independent postal regulator.
“Only a regulator separate from the big incumbent former monopolies can ensure that postal services give users the benefits of competition,” said Frits Bolkestein, the European Union Internal Markets Commissioner.
France was supposed to set up an independent regulator in 1997. Instead, the Commission says the French regulator is appointed by the Ministry of Finance, which is also responsible for supervising the state ownership of La Poste.
The French government did appoint a postal ombudsman in 2001. But the Commission said the ombudsman doesn’t replace the minister as the regulatory authority.
The Commission sued Belgium two years ago, saying it lacked an independent regulator. But this year Belgium passed a law establishing such a regulator, so the Commission says it now will drop the case.
The case against France now goes to the European Court of Justice, with no verdict expected for at least two years.
In a related decision, the Commission is also taking France to court over its refusal to allow competitors to deliver letters. It already is suing Austria and Greece for similar infringements.
-By William Echikson, Dow Jones Newswires;32-2-285-0134; william.echikson@ dowjones.com
Dow Jones Newswires
12-17-030706ET
