Canada Post not subsidising courier
Contrary to UPS’s assertion in your July 8 article “UPS browned off with Canada Post,” the decision in Europe requiring Deutsche Post to repay some $840 million to the German government for using monopoly profits and state aid to subsidize its commercial courier operation is interesting but has no “significant adverse implications for Canada Post.”
Simply stated, Canada Post does not use its letter-mail network to subsidize its courier business. In fact, the Competition Bureau of Canada has twice thoroughly reviewed the issue and found no evidence to indicate that Canada Post engaged in cross-subsidization, and this is also certified every year by independent auditors.
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