Deutsche Post AG, the German postal operator, is being threatened with a heavy fine from the EU Commission, for unpermitted subsidisation. It is thought the company may be asked to pay back as much as 800m euros.
Read MoreThe German association of wholesale and export traders (BGA) on Tuesday said it is taking action against postal services group Deutsche Post to contest the rates it charges in monopoly areas. It said it is demanding repayments totaling 21,000 euros.
The case could compel German regulators to lower the minimum letter price or prompt similar complaints from numerous other industry groups. A ruling is expected within six months, though a subsequent appeal by either side is possible.
Deutsche Post AG, Germany’s postal services monopoly, has issued a strong denial of accusations by the country’s Commissioner of audits that it does not pay enough VAT. Edgar Ernst, head of finance, said that Deutsche Post had special legal dispensations exempting parts of its business from VAT. The spat was sparked by a report which concluded that Deutsche Post should collect an additional 445m euros in VAT per year.
Read MoreDeutsche Post AG (G.DPW) faced Wednesday the threat of a legal dispute with a leading German industry group seeking repayments for letter costs. The German Association of Wholesale and Export Traders said it would demand repayments from Deutsche Post in a forthcoming complaint over monopoly letter prices to the state court of Berlin.
Read MoreDeutsche Post AG (G.DPW) confirmed Wednesday that it has launched a cost-cutting program, but the partially privatized mail group denied it is planning a reorganization. Earlier Wednesday, daily newspaper Die Welt said Deutsche Post had begun a cost-cutting program that could lead to a broad restructuring of the group, including the creation of a holding company.
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