EU to examine all German subsidies to Deutsche Post in new state aid probe
EU regulators will investigate the German state subsidies of Deutsche Post, once the state-owned postal service, to determine if it bolstered commercial operations with public money, the European Union said Wednesday.
The EU’s executive arm said rivals had complained that Deutsche Post AG used government money to undercut the private sector by selling services “too cheaply” to banking arm Postbank and parcel service DHL – one of the world’s three biggest delivery companies.
Deutsche Post immediately denied any illegal subsidies, calling the investigation “surprising and completely incomprehensible.” Deutsche Post said regulators have reviewed company accounts numerous times.
In Berlin, Finance Ministry spokesman Torsten Albig said the investigation had been expected and expressed confidence the Commission would clear the company in end.
The new investigation comes on top of the EU’s 2002 order for Deutsche Post to repay the German government 572 million euros (USD 791 million) in public money that the company had used to finance a rebate pricing policy for its door-to-door parcel business.
Governments usually pay postal operators to run the costly mail delivery service for the country, but they are forbidden from using the money for other services.
