Sondagsavisen A/S reports Post Danmark A/S to EU for unlawful state subsidies

The Danish publishing and distribution company Sondagsavisen A/S said on 12 July that it would initiate proceedings against the Danish postal services company Post Danmark A/S and the Danish state for violating European Union regulations on state subsidies.

According to Sondagsavisen Post Danmark violated EU regulations on state subsidies by transferring the costs of its printed matter distribution services to its mail monopoly operations.

Sondagsavisen said that the arrangement meant that the customers in the monopoly segment financed Post Danmark’s loss-producing prices in the competition segment.

According to Sondagsavisen Post Danmark in this way received state subsidies of DKK4-5bn during the years 1995-2004.

Sondagsavisen is reporting Post Danmark and the Danish state to the European Commission.

One Danish krone (DKK) is worth approximately GBP0.09.