Tag: European Commission

Commission takes the Netherlands to Court of Justice on special powers in KPN and TNT

The European Commission has decided to take the Netherlands to the European Court of Justice in two separate cases with respect to certain provisions of the Articles of Association of KPN and TPG that grant the Dutch State special rights as holder of the special share (“golden share”) in the respective capital of the companies. Given the major influence these special rights confer on KPN’s and TNT’s financial decision-making as well as the management of the two companies, this “golden share” could deter investors from other Member States from investing in the capital of the two firms. The Commission therefore takes the view that these special rights are contrary to the free movement of capital laid down in Article 56 of the EC Treaty and the right of establishment in Article 43.

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France before the Court over the non-implementation of two postal Directives

The European Commission has decided to refer France to the European Court of Justice to ensure it fully implements the two EU postal services Directives. The first Directive dates from 1997 and among other things requires Member States to appoint a national postal regulator legally and operationally separate from the postal operators. The second Directive, adopted in 2002, commits Member States to gradually open certain sectors of their postal markets to competition. The Commission has at the same time decided to close infringement cases against Belgium, which has now adopted a law establishing an independent regulator as required by the first Directive and against Greece and Austria, which have notified the Commission that they have put in place the market opening measures stipulated by the second Directive.

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EU Sues France To Speed Up Postal Deregulation

The European Union sued France Wednesday for failing to deregulate its postal market. The Commission said France must open up the market for letters weighing more than 100 grams and establish an independent postal regulator. “Only a regulator separate from the big incumbent former monopolies can ensure that postal services give users the benefits of competition,” said Frits Bolkestein, the European Union Internal Markets Commissioner. France was supposed to set up an independent regulator in 1997. Instead, the Commission says the French regulator is appointed by the Ministry of Finance, which is also responsible for supervising the state ownership of La Poste. The French government did appoint a postal ombudsman in 2001. But the Commission said the ombudsman doesn’t replace the minister as the regulatory authority.

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2003 stamp price survey confirms worries on excessive tariffs in Europe

The Free and Fair Post Initiative (FFPI) today released its third EU stamp price survey. The study, which this year also covers the ten new EU Member States, confirms the trend towards price increases and highlights the remarkable gaps that exist among current Member States and between them and the accession countries. The FFPI’s research shows that the wide price differences registered in 2002 have not been reduced and that tariffs have in most States registered further raises. In 11 out of 15 current EU Member States stamp prices have been increased in the past year. In addition, requests for price
reviews have been filed by postal operators in some countries where decisions are still pending and will likely be taken in 2004.
Includes stamp prices in the EU-25 for basic domestic letters & EU Stamp Price Chart – Prices in Euro Cents

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UK Mail Operators to be Exempt from VAT?

The Sunday Telegraph reports today that the views of Nigel Stapleton, Postcomm’s Chairman-designate, ‘will set him on a collision course with the European Commission’. This is unlikely! The British Government (including Postcomm) oppose the imposition of full-rate VAT on stamps. However, a draft EC Directive allows there to be a reduced rate which could, in the UK, be a pain-free alternative to the current situation in which Royal Mail’s customers pay hidden VAT of around 3%. This is because Royal Mail pass on to their customers the VAT that the company pays but cannot reclaim. It may be, therefore, that the introduction a low VAT rate might level the competitive playing field without increasing the price of a stamp. This issue will be explored in some detail in a consultative document which Postcomm intends to publish within the next few weeks.

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