WRITTEN QUESTION E-1646/00 by Ward Beysen (ELDR) to the Commission. Abuse of monopoly position by the German Post Office (DPAG).
Date: 2000-05-29
Institutions: European Parliament, Provisional data
Subjects: Germany, common commercial policy, control of State aid, postal service

20.2.2001

EN

Official Journal of the European Communities

C 53 E/171

(2001/C 53 E/221)

WRITTEN QUESTION E-1621/00

by Nelly Maes (Verts/ALE) to the Commission

(29 May 2000)

Subject: Complaint of unfair competition against German Postal Service

European rules on competition stipulate that postal services may not use their income from reserved
services to cross-subsidise operations in sectors that have been opened up to competition. In Germany, the
German Postal Service (Deutsche Post AG) enjoys a legal monopoly in the standard postal service. The
parcels service, however, operates as a non-reserved facility. By contrast with the ordinary postal service,
which makes a profit, the parcels service has been loss-making since 1984. In 1994 the first of a series of
complaints was lodged with the European Commission alleging unfair competition.

On 21 July 1999 the Commission brought proceedings against the German Postal Service alleging
unlawful government support. The Commission(cid:146)s judgment in this matter will be a test of the appropriate-
ness and credibility of the rules relating to the postal sector and government support. If state support
distorts competition, the ultimate sanction guaranteed by compliance with European rules is repayment of
the unlawful state support.

In other cases involving Germany, the European Commission has applied the rules relating to government
support strictly, requiring German companies to repay unlawful state support.

Will the Commission be able to resist pressure from Germany if a complaint is lodged against the German
Postal Service and continue to uphold the same resolute position?

(2001/C 53 E/222)

WRITTEN QUESTION E-1646/00

by Ward Beysen (ELDR) to the Commission

(29 May 2000)

Subject: Abuse of monopoly position by the German Post Office (DPAG)

In June 1994 a complaint was made against the DGAP, on the grounds that it abused its monopoly
position by diverting the proceeds of the monopoly to the parcel service which was not part of the
monopoly, which amounts to an unauthorised cross-subsidy, and also that it received unauthorised
government support. With the profits it has amassed, the DPAG has even succeeded in building up a
pan-European network, which is of course against European competition rules. The investigation is taking
the
some considerable time to reach a conclusion. When can the decision be expected, and will
Commission in its decision enforce European competition rules fairly and fully and set firm guidelines
with regard to State support,
in order to guarantee both viable competition and free choice for the
consumer? If the cross- subsidy is proven, will the Commission impose effective sanctions, such as
ordering the DGAP to refund the subsidy? Finally, what steps will the Commission take to prevent future
cross-subsidies and distortions of competition?

Joint answer
to Written Questions E-1621/00 and E-1646/00
given by Mr Monti on behalf of the Commission

(30 June 2000)

The Commission decided on 20 July 1999 to initiate the procedure laid down in Article 88 (2) (ex Article
93) of the EC Treaty in respect of possible state aid granted to Deutsche Post AG.

The procedure covers the whole range of state aid allegations concerning Deutsche Post AG.

The Commission is currently examining the observations received from the German Government and
interested parties. Since the examination is still pending no indications about the possible outcome of the
investigations can be given at this stage.