Tag: Mail Services

Deutsche Post World Net AG expects its mail operations monopoly will face ‘completely noticeable competition’ only by 2007 at the earliest, a company spokesman said in reaction to the decision of the German Cartel Office to demand an end to its monopoly on letters weighing less than 100 grams. He said before this time, one could not expect that competitors would be able to use ‘the possibilities in all its latitude’ within its network. The Cartel Office today said Deutsche Post must open up its monopoly on the collection and sorting of letters weighing below 100 grams.

Germany’s Cartel Office has said Deutsche Post World Net AG must allow mail sorters and consolidators of letters weighing below 100 grams access to its delivery networks. The Cartel Office also criticised Deutsche Post for giving rebates of between 3 and 21 pct to its own major client firms for bulk mail contracts, which it does not offer to other mail service providers. ‘Through granting rebates, Deutsche Post is hindering competitors from entering the letter collection, pre-sorting and delivery market,’ it said, adding that this hurts small- and medium-sized companies’ whose letter volumes are too small to obtain a rebate. It said that Deutsche Post’s current exclusive license to distribute letters in Germany below 100 grams does not justify this kind of behaviour.