European Commission to investigate Belgian Post Office

BRUSSELS (AFX) – The European Commission said it has filed anti-trust
objections with Belgian postal operator La Poste following a complaint by Hays
PLC unit Hays Management Service SA that La Poste’s business practices could
force it out of the Belgian market by the end of the year.
La Poste offered rebates on its traditional mail service — where it has a
statutory monopoly – to customers who agreed to subscribe to a new business mail
service launched at the beginning of the year which competes directly with Hays’
DX service, it said.
“The use of discounts in the monopoly area by La Poste as a means to attract
clients to other services endangers the viability of competition in those areas
which are open to alternative operators,” said competition commissioner Mario
Monti.
Hays alleges that La Poste’s business letter mail service aimed at insurance
companies and brokers is closely modelled on its own, and says that many
customers attracted by the rebates have abandoned Hays in favour of the new
service.
The commission has begun formal proceedings against La Poste, and could
prohibit the practice and impose fines if La Poste cannot defend itself against
the allegations satisfactorily.