Proposal for a European Parliament and Council Directive amending Directive 97/67/EC with regard to the further opening to competition of Community postal services
Date: 2000-05-30
Institutions: European Commission
Subjects: competition, harmonisation of standards, postal service, quality standard, single market

C 337 E/220

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Official Journal of the European Communities

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Proposal for a European Parliament and Council Directive amending Directive 97/67/EC with
regard to the further opening to competition of Community postal services

(2000/C 337 E/36)

(Text with EEA relevance)

COM(2000) 319 final (cid:16) 2000/0139(COD)

(Submitted by the Commission on 14 July 2000)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

principles and conditions which enable them to fulfil their
missions.

Having regard to the Treaty establishing the European
Community, and in particular Articles 47(2), 55 and 95
thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of
Committee,

the Economic and Social

Having regard to the opinion of the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty,

Whereas:

(1) The Council in its resolution of 7 February 1994 on the
development of Community postal services (1), identified
as one of the main objectives of Community postal policy
the gradual,
the
controlled opening to competition of the postal market
and that of a durable guarantee of the provision of the
universal service.

furtherance of

reconciling of

the

(2) Directive 97/67/EC of the European Parliament and of the
Council of 15 December 1997 on common rules for the
development of the internal market of Community postal
services and the improvement of quality of service (2)
established a regulatory framework for the postal sector
at Community level,
including measures to guarantee a
universal service, the setting of maximum limits for the
postal services which Member States may reserve to their
universal service provider(s) with a view to the main-
tenance of
the universal service, and a timetable for
decision-making on the further opening of the market
to competition,
for the purposes of creating a single
market in postal services.

(4) The European Parliament’s Resolutions of 14 January
1999 on European postal services (3) and its further
Resolution of 18 February 2000, also on European
the social and economic
postal
importance of postal services and the need to maintain
a high quality of universal service.

services (4), highlight

(5) The European Council, meeting in Lisbon, on 23 and 24
March 2000, set out in its Presidency conclusions two
decisions applying to postal services, whereby action
was requested of the Commission, the Council and the
Member States
respective
powers. The requested actions are: first, to set out by
the end of 2000 a strategy for the removal of barriers
to services, namely postal services, and secondly, to speed
up liberalisation in areas such as postal services, the stated
aim being to achieve a fully operational market in postal
services.

in accordance with their

(6) The Commission has undertaken a thorough review of the
Community postal sector, including the commissioning of
studies on the economic, social and technological devel-
opments in the sector, and has consulted extensively with
interested parties.

(7) The Community postal sector requires a modern regu-
latory framework which aims at enhancing the internal
market for postal services in order to enable the sector to
compete with alternative methods of communication and
to satisfy the changing and increased demands of users.

(8) The basic aim of ensuring the durable provision of a
universal service to matching the standard of quality
required by Directive 97/67/EC on a consistent basis
throughout
secured under
conditions of high efficiency ensured by the freedom to
provide services in this area.

the Community can be

(3) Article 16 of the Treaty highlights the place occupied by
services of general
interest in the shared values of the
Union as well as their role in promoting social and terri-
torial cohesion; the same Article further states that care
should be taken that such services operate on the basis of

(9) The competitive advantages provided by a universal postal
network which is efficient and responsive to customer
demand can help to offset any additional costs incurred
by reason of the obligation to provide a universal service
which cannot be self-financing.

(1) OJ C 48, 16.2.1994, p. 3.
(2) OJ L 15, 21.1.1998, p. 14.

(3) OJ C 104, 14.4.1999, p. 134.
(4) Resolution B5-0116/2000; not yet published in the Official Journal.

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(10) Experience has shown that referring only to the price
limit as a means of determining the added value of
express services is no longer a practical proposition due
to the development of added value express services below
the price limit.

fulfilling special customer needs,

(11) It is therefore appropriate to define a category comprising
this
@special servicesA
category should include all services with the required
added features. Such services should not be reserved,
regardless of
the weight or the price of such items.
Sending mail electronically for distant printing only will
not be sufficient to take it outside the reserved area.

(12) The increase in demand within the postal sector as a
the medium term, will help to
whole, predicted for
offset the loss of market share that the universal service
providers may incur as a result of further market-opening
and will thereby further safeguard the universal service.

important; of

in the postal sector,

(13) Amongst the factors which bring about change affecting
employment
technological devel-
opment and market pressure for efficiency gains are the
the remaining factors for change,
most
market-opening will play a less prominent part. Market-
opening will help to expand the overall size of the postal
markets, and any reductions in staff
levels among the
universal service providers due to such measures (or
their anticipation) are likely to be offset by the resulting
growth in employment among private operators and new
market entrants.

(14) It

is appropriate to provide at Community level a
timetable for a gradual and controlled opening of the
letters market to competition which allows all universal
service providers sufficient time to put in place the further
measures of modernisation and restructuring required to
ensure their long-term viability under the new market
conditions. An appropriate period of time is also needed
to enable Member States to adapt their regulatory systems
to a more open environment. It is therefore appropriate to
provide for a step-by-step approach to further market-
opening, consisting of an intermediate step representing
a significant but controlled opening of
the market,
followed by a review and proposal for a further step.

(15) It is appropriate to ensure that the next phase of market-
opening is both substantial in nature and achievable in
practice for the Member States.

(16) A general reduction to 50 grams in the weight limit of the
services which may be reserved to the universal service
providers, combined with opening outgoing cross-border
mail and express mail fully to competition, represents a
relatively simple and controlled further phase which is
nevertheless significant.

(17) In the Community,

items of ordinary correspondence
weighing between 50 grams and 350 grams represent
on average approximately 16 % of
the total postal
revenues of the universal service providers, whilst items
of outward cross-border correspondence and express
services below the price limit represent a further 4 % or
so, on average, of
the
universal service providers.

the total postal

revenues of

(18) A price limit for the services capable of being reserved, of
for an item of
the fastest
is most appropriate in combination

two and a half times the public tariff
correspondence in the first weight step of
standard category,
with a 50-gram weight limit where applicable.

(19) A 50-gram weight limit for items of ordinary domestic
correspondence is practical, since as it does not present a
risk of its circumvention by means way of an artificial
items of corre-
increase in the weight of
spondence, most items of correspondence being below
20 grams in weight.

individual

(20) Direct mail already represents in most Member States a
dynamic and growing market with substantial growth
prospects while in the remaining Member States there is
considerable potential for growth. Direct mail is already
largely open to competition in six Member States. The
improvements in service flexibility and pricing resultant
from competition would improve the position of direct
mail versus alternative communications media, which, in
turn, would be likely to lead to new postal items as an
additional spin-off and strengthen the position of
the
postal
industry as a whole. Nevertheless, to the extent
necessary to ensure the provision of universal service, it
should be provided that direct mail may continue to be
reserved within the above weight and price limits of 50
grams and two and a half times the basic public tariff.

(21) Outgoing cross-border mail

is already de facto open to
competition in most Member States;
its reservation is
not needed to ensure universal service representing on
average 3 % of total postal revenues. Opening this part
of
jure would allow different postal
operators to collect, sort and transport all outgoing cross-
border mail and to deliver it in Member States, but only
where the domestic regulation in a particular Member
State permits this.

the market de

(22) Opening incoming cross-border mail
would allow circumvention of
through relocation of
bulk domestic mail,
dictable.

to competition
the 50-gram limit
the posting of a proportion of
thereby making its effects unpre-
corre-

Identifying the origins of

items of

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present

additional
limit
for
correspondence

enforcement
could
spondence
items of
difficulties. A 50-gram weight
ordinary
and
incoming cross-border
direct mail, as for ordinary domestic correspondence, is
practical as it does not present a risk of circumvention
either in this way or through an artificial increase in the
weight of individual items of correspondence.

(23) Setting a timetable now, aimed at a further step towards
the completion of the internal market in postal services, is
important for both the long-term viability of the universal
service and the continued development of modern and
efficient posts.

(24) It is appropriate to provide for a further period within
which Member States may continue to reserve certain
postal services to their universal service provider(s). This
service
enable
additional period will
providers
to complete the process of adapting their
operations and human resources to conditions of greater
competition without upsetting their financial equilibrium
and thus without jeopardising the provision of universal
service.

the universal

(25) It is appropriate both to define the new weight and price
limits and the services to which they may apply and to
which provides for a further review and decision on
further market-opening.

(26) Measures adopted by a Member State, including the estab-
lishment of a compensation fund or any change in its
operation or any implementation of or payment from it,
may involve aid granted by a Member State or through
State resources
in any form whatsoever within the
the Treaty necessitating
meaning of Article 87(1) of
prior notification to the Commission pursuant to Article
88(3) thereof.

(27) The concept of

licensing competitors in the universal
service
combined with requirements
obliging such licensees to contribute to the provision of
universal service.

can be

area

their

(28) It is appropriate for national regulatory authorities to link
the introduction of all such licenses to requirements that
consumers of
services are to have transparent,
simple and inexpensive procedures available to them for
dealing with their complaints, regardless of whether they
relate to the services of the universal service provider(s) or
to those of operators holding authorisations,
including
is further appropriate for
It
individual
these procedures to be available to users of all postal
services, whether or not they are universal services.

license-holders.

(29) The universal service providers normally provide services,
for example to business customers, consolidators of mail
for different customers and bulk mailers, enabling them to
enter
the mail stream at different points and under
different conditions by comparison with the standard
service
letters

In doing this,

the universal

service.

both as

and non-discrimination,

trans-
providers should comply with the principles of
parency
between
different third parties and as between third parties and
universal service providers supplying equivalent services.
It is also necessary for such services to be available to
residential customers who post
in similar conditions,
given the need for non-discrimination in the provision
of services.

(30) It is appropriate in the light of the complaints which have
been raised against certain incumbent operators in recent
years to provide for Member States to adopt rules to
ensure that universal service providers do not cross-
subsidise services outside the reserved area by means of
revenues from services in the reserved area, except where
is shown to be strictly necessary to fulfil specific
it
universal service obligations.
It is therefore appropriate
for national regulatory authorities to adopt rules to this
effect and for them to communicate these rules to the
Commission.

(31) In view of the amendments, it is appropriate to postpone
until 31 December 2006 the date for the expiry of
Directive 97/67/EC.

(32) Directive

97/67/EC should

therefore

be

amended

accordingly.

(33) This Directive is without prejudice to the application of
the Treaty rules on competition and on the freedom to
provide services, as explained in particular in the Notice
application of
from the Commission on the
the
competition rules
sector and on the
to the postal
assessment of certain State measures relating to postal
services (1),

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Directive 97/67/EC is hereby amended as follows:

1. In Article 2, the following point is added:

@20. Special

services:

services

additional

clearly distinct

and which offer

from the
service, which meet particular customer
universal
requirements
service
features with added-value not offered by the standard
postal service. Additional added-value service features
are, for example, delivery on appointment, the option
to effect a change of destination or of addressee in
course of transit or if delivery to the primary desti-
nation fails, tracking and tracing, guaranteed time of
delivery, more than one attempt at delivery, delivery
according to the priority or sequence specified by the
customer.

Home collection without any such features is not a
special service.

(1) OJ C 39, 6.2.1998, p. 2.

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Electronic transmission to and/or electronic receipt by
the operator for sorting, printing and/or preparation of
mail shall not be regarded as an additional service
feature within the meaning of the first subparagraph.

To that end, the Commission shall present a proposal by 31
December 2004, following a review of the sector which will
shall focus on the need to ensure the provision of universal
service in an appropriate manner in a competitive market
environment.

the

following

additional

Express mail is a special service, which, in addition to
faster and more reliable collection, transportation and
delivery, is characterised by the provision of some or
features:
all of
collection from the sender’s address, delivery to the
addressee in person or to his authorised representative,
guarantee of delivery by a given date, possibility of a
change of destination and addressee in transit, confir-
mation to the sender of delivery, tracking and tracing,
personalised treatment for customers and the offer of a
range of services according to requirements.A

service

2. Article 7 shall isbe replaced by the following:

@Article 7

services

to the universal

1.
To the extent necessary to ensure the provision of
universal service, Member States may continue to reserve
service
certain standard mail
provider(s). Those services shall be limited to the clearance,
sorting, transport and delivery of ordinary items of domestic
correspondence and incoming cross-border correspondence
within both of the following weight and price limits. The
weight limit shall be 50 grams. This weight limit does not
apply if the price is equal or more than two and a half
times the public tariff for an item of correspondence in the
first weight step of the fastest category.

In the case of the free postal service for blind and partially
sighted persons,
to the weight and price
exceptions
restrictions may be permitted.

To the extent necessary to ensure the provision of universal
service, direct mail may continue to be reserved within the
above weight and price limits referred to in the first
subparagraph.

Items

of outgoing

correspondence,
2.
document exchange and special services (including express
mail) may not be reserved.

cross-border

Upon request by the Commission, Member States shall
provide all
the information necessary for completion of
this review.A

3. In Article 9, the following paragraph is added:

for

for

services

example

apply the principles of

@6. Whenever universal service providers apply special
tariffs,
for businesses, bulk
mailers or consolidators of mail from different customers,
transparency and
they shall
non-discrimination with regard both to the tariffs and to
the associated conditions. The tariffs shall take account of
the avoided costs, as compared to the standard service
features offered for the
covering the complete range of
individual
transport,
clearance,
postal
items and, together with the associated conditions,
shall apply equally both as between different third parties
and as between third parties and universal service providers
supplying equivalent services.

sorting and delivery of

Any such tariffs
customers who post under similar conditions.A

shall also be available to residential

4. In Article 12, the following indent is added:

@E cross-subsidisation of universal services outside the
reserved area out of revenues from services in the
reserved area shall be prohibited except to the extent
to which it is shown to be strictly necessary to fulfil
specific universal service obligations imposed in the
competitive area; rules shall be adopted to this effect
by the national regulatory authorities who shall inform
the Commission of such measures.A

5. In Article 19, the following sentence is added to the first

paragraph:

this principle is also
@Member States shall ensure that
applied to beneficiaries of postal services which do not
fall within the universal service.A

For special services, the sending of mail electronically for
distant printing only shall not be sufficient to avoid the
monopoly on incoming cross-border mail.

6. In Article 27, the date @31 December 2004A is replaced by

the date @31 December 2006A.

3.
the
As a further step towards the completion of
internal market in postal services, the European Parliament
and the Council shall decide, not later than 31 December
2005, on a further opening of the postal market with effect
from 1 January 2007.

Article 2

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive no later
than 31 December 2002. They shall
forthwith inform the Commission thereof.

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When Member States adopt those provisions, they shall contain
a reference to this Directive or be accompanied by such a
reference on the occasion of
their official publication.
Member States shall determine how such reference is to be
made.

2. Member States shall communicate to the Commission the
texts of the main provisions of national law which they adopt
in the field covered by this Directive.

Article 3

This Directive shall enter into force on the twentieth day
following that of its publication in the Official Journal of the
European Communities.

Article 4

This Directive is addressed to the Member States.