Tag: Europe

French La Poste decision reversed

European Union regulators were wrong to allow the French state-run postal service to help a unit expand into express delivery in the 1980s and ’90s, an EU court ruled Wednesday in a case brought by FedEx and DHL International. The regulators’ conclusion in 1997 that France did not provide illegal subsidies by allowing La Poste to grant logistical support to its Chronopost subsidiary was unjustified, the European Court of First Instance in Luxembourg ruled. Industry groups have complained that former monopolies like La Poste have used government aid, which is intended to support nationwide letter delivery, to buy competitors in the express business. The case at the Court of First Instance, the second-highest European court after the European Court of Justice, was brought by express mail carriers FedEx, DHL and Crie, as well as industry group Union Francaise de L’Express.

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Brussels launches French probe into savings banks

The European Commission yesterday reignited its long-running feud with France over alleged illegal subsidies and unfair advantages granted to the country’s savings banks. The Brussels-based regulator suspects the French government could have violated European Union rules in its dealings with Credit Mutuel, La Poste and Caisse d’Epargne – the three lenders allowed to distribute popular, state-subsidised savings books known as Livret A and Livret Bleu. It has launched a formal probe into the matter. An inquiry will be a boost for the group of rival French banks – including Societe Generale, BNP Paribas, Credit Agricole and Banque Populaire – which have spent years trying to break what they claim is an unfair oligopoly among the savings banks.

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DHL opens European home-shopping hub

DHL on Thursday opened a new center in Greven, Germany, that ultimately will handle all logistics tasks for the Home Shopping Europe teleshopping channel.
Full operations will begin in a few days. Starting in July, the 35-million euro center will handle the complete logistics operations for HSE24. The center will employ 250 and ship up to 40,000 packages per day. The express unit of Deutsche Post World Net said the center stakes a claim in the rapidly growing teleshopping business that depends on short distances and fast deliveries.

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