Proposal for a Directive of the European Parliament and of the Council amending Directive 97/67/EC concerning the full accomplishment of the internal market of Community postal services {SEC(2006) 1291} {SEC(2006) 1292}
Date: 2006-10-18
Institutions: European Commission
Subjects: competition policy, liberalisation of the market, postal service, universal service

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.10.2006 
COM(2006) 594 final 

2006/0196 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

amending Directive 97/67/EC concerning the full accomplishment of the internal market 
of Community postal services 

(presented by the Commission) 

{SEC(2006) 1291} 
{SEC(2006) 1292} 

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EXPLANATORY MEMORANDUM 

1. 

BACKGROUND 

As part of the process of reconciling the twin objectives of a gradual, controlled opening of 
the  postal  market  to  competition  and  that  of  a  durable  guarantee  of  the  provision  of  the 
universal  service,  as  foreseen  by  the  Council  in  its  Resolution  of  7  February  1994  on  the 
development of Community postal services1, the Postal Directive2 provides for a timetable for 
decisions  on  further  opening  to  competition  of  the  postal  markets.  Article  7  of  the  Postal 
Directive, states that: 

–  the Commission must submit by 31  December  2006  a report to  the European Parliament 
and the Council accompanied by a proposal confirming, if appropriate, the date of 2009 for 
the full accomplishment of the postal internal market or determining any other step; 

–  the Commission proposal must be based on the conclusions of a prospective study which 
will  assess,  for  each  Member  State,  the  impact  on  universal  service  of  the  full 
accomplishment of the postal internal market in 2009. 

The present proposal is based on the conclusions of the Prospective Study on the impact on 
universal service of the full accomplishment of the postal internal market in 20093, as required 
by the Postal Directive, an Impact Assessment Report4 and a Report on the application of the 
Postal  Directive5  which  includes  a  thorough  review  of  the  sector.  In  these  documents  more 
detailed  information  can  be  found  regarding  the  general  background  and  reasoning  for  this 
proposal as outlined in the following sections. 

2. 

THE COMMISSION'S PROPOSAL 

2.1. 

Legal aspects  

2.1.1. 

Subsidiarity principle 

The  objectives  of  the  proposed  action  are  to  achieve  an  internal  market  for  postal  services 
through the removal of exclusive and special rights in the postal sector, safeguard a common 
level of universal services for all users in all EU countries and set harmonised principles for 
the  regulation  of  postal  services  in  an  open  market  environment,  with  the  aim  of  reducing 
other obstacles to the functioning of the internal market.  

These objectives cannot be sufficiently achieved by Member States alone. The most striking 
example of this is that a number of Member States retain monopolies of varying scope over 

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5 

OJ C 48, 16.2.1994, p. 3. 
Directive 97/67/EC of the European Parliament and 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 (OJ L 15, 21.1.1998, p. 14), as amended by Directive 2002/39 of the European Parliament and 
of  the  Council  of  10  June  2002  amending  Directive  97/67/EC  with  regard  to  the  further  opening  to 
competition of Community postal services (OJ L 176, 5.7.2002, p. 21). 
COM(2006) 596. 
SEC(2006) 1291. 
COM(2006) 595. 

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the provision of certain postal services in order to finance universal service, while others have 
completely or partly removed service monopolies or have firm plans to do so before 2009. 

These  objectives  can,  by  the  reason  of  the  scale  or  effects  of  the  proposed  action,  be  better 
achieved  at  Community  level  and  it  is  submitted  that  the  Community  can  therefore  adopt 
measures  in  accordance  with  the  principle  of  subsidiarity  as  set  out  in  Article  5  of  the  EC 
Treaty.  

2.1.2.  Proportionality 

In accordance with the principle of proportionality, as set out in Article 5 of the EC Treaty, 
this  Directive  does  not  go  beyond  what  is  necessary  in  order  to  achieve  the  proposed 
objectives.  

This  proposal  for  an  amended  Directive  continues  to  provide  for  a  general  framework  of 
regulatory elements, rather than a detailed set of rules to regulate the sector. 

The principle of proportionality is the reason why the proposal contains a range of choices for 
Member States on how best to attain the proposed objectives: 

–  the  methods  of  financing  proposed  in  Article  7  leave  Member  States  a  large  choice  of 

options to choose from, rather than imposing one single solution;  

–  the issue of access to the network is addressed in the proposed new Article 11a and leaves 
it  to  Member  States  to  assess  the  need  for  and  extent  of  regulation  concerning  access  to 
certain elements of the postal infrastructure or services and to regulate downstream access 
to sorting and delivery parts of the network;  

–  it is proposed to remove the requirement to monitor cross-subsidies though sector specific 
rules currently in Article 12, sixth indent, and to leave the effective regulation of this issue 
to Member States;  

–  it  is  not  proposed  to  create  new  bodies  to  coordinate  the  activities  of  national  regulatory 

authorities. 

3. 

ELEMENTS OF THE PROPOSAL 

3.1. 

Confirmation of the market opening timetable set in the Directive on the basis 
of the conclusions of the Prospective Study on the impact on universal service of 
the full accomplishment of the postal internal market in 2009 

The  Prospective  Study  concludes  that  the  achievement  of  an  internal  market  for  postal 
services in all Member States in 2009 is compatible with the maintenance  of  a high  quality 
universal service and confirms full market opening by the 1st of January 2009.  

The confirmation of 2009 as the date for completion of the internal market for postal services 
will allow the benefits of greater competition to improve service levels, in terms of quality, 
prices and choice available to customers and to unlock the growth and employment potential 
of the sector. It is also a necessary and proportionate response to the needs both of users and 
of the broader European economy. 

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In  order  to  maintain  territorial  and  social  cohesion,  and  taking  into  account  that  Member 
States  may  adapt  some  specific  service  features  to  accommodate  local  demand  by  applying 
flexibility  provided  in  the  Postal  Directive,  it  is  appropriate  to  fully  maintain  the  universal 
service and the associated quality requirements set out in the said Directive. 

Consequently,  this  proposal  provides  for  a  new  Article  7  which,  in  its  first  paragraph, 
prohibits Member States to grant or maintain exclusive and special rights in the postal sector.  

3.2. 

Complementary and accompanying measures to safeguard the universal service 

The Prospective Study has identified a number of accompanying, or "assisting", measures, at 
both EU and national level that Member States may adopt to safeguard the universal service if 
this becomes necessary. Some of these are regulatory and some are market based, but all are 
designed to facilitate and/or safeguard the provision of the universal service under financially 
viable conditions in a competitive market. These measures are considered sufficient to make 
market opening possible in all Member States. 

Additional safeguards, in the form of specific financing mechanisms have also been identified 
to compensate, if necessary and proportionate, the uneconomic cost of providing the universal 
service, in ways which would be less distortive for the internal market than the retention of 
monopolies. 

Some  of  the  regulatory  measures  designed  to  safeguard  the  universal  service  are  already 
available  under  the  current  Postal  Directive,  such  as  adapting  the  provision  of  universal 
service to users' needs within the limits of the Postal Directive, introducing service obligations 
on  licensed  operators,  intervention  of  regulatory  authorities  to  protect  competition  and,  as 
appropriate,  the  introduction  of  downstream  access  to  the  sorting  and  delivery  part  of  the 
network.  To  the  extent  that  additional  regulatory  assisting  measures  would  be  required  at 
Community level, these have been reflected in this proposal. 

Furthermore  Member  States  should  themselves  decide  on  the  measures  that  are  either 
connected with the operation of the market or are not part of the Community framework. As 
illustrated  in  the  Prospective  Study  and  sector  studies,  these  may  include  further  increased 
efficiency measures to be adopted by incumbent universal service providers, diversification of 
their sources of revenues, and measures to stimulate volume. 

In  accordance  with  the  proposed  EU  postal  framework,  Member  States  will  be  able  to 
determine the best adapted combination of the different measures that could be implemented 
to safeguard the universal service in the new market environment. 

3.2.1.  Alternative cost effective measures for ensuring the universal service (Articles 3 and 

6) 

Article  4  of  the  Postal  Directive  established  a  preference  for  the  provision  of  the  universal 
service  through  the  mandatory  ex-ante  designation  of  universal  service  provider(s).  The 
development of greater competition and choice in the market means that there may be other 
equally  effective  ways  of  ensuring  the  provision  of  the  universal  service.  This  proposal 
provides, through proposed amendments to Articles 4 and 3(3), that Member States have the 
possibility  to  determine  the  most  efficient  and  appropriate  mechanism  to  guarantee  the 
availability  of  the  universal  service,  while  respecting  the  principles  of  objectivity, 
transparency, non discrimination, proportionality and least market distortion.  

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These mechanisms may facilitate the provision of the universal service or parts of it by, for 
instance,  leaving  its  provision  to  market  forces  or  allowing  Member  States  to  identify  the 
specific  services  or  regions  where  the  universal  service  cannot  be  ensured  by  market  forces 
and procuring those services in a cost effective manner through public tendering. 

Coherent  with  the  enhanced  flexibility  of  Member  States  to  ensure  the  provision  of  the 
universal  service  in  ways  other  than  the  ex  ante  designation  of  the  universal  service 
provider(s), this proposal provides, through an amendment to Article 6, that Member States 
can  decide  how  best  to  ensure  that  the  information  concerning  universal  services  is  made 
available to the public. 

3.2.2.  Reinforcing  and  clarifying  the  principle  that  universal  service  tariffs  must  be 

oriented to costs (Article 12, second indent, and Article 2, paragraph 20)  

The principle that services must be cost oriented has been translated in a different manner in 
the  different  language  versions  of  Directive  97/67/EC,  leading  to  possible  differences  of 
interpretation. The use of the concept 'cost orientation', in the language versions where this is 
still  not  the  case  at  present,  will  contribute  to  the  uniform  application  of  this  principle. 
Furthermore,  the  principle  that  prices  must  stimulate  efficiency  gains  will  improve  the 
application of this provision for the benefit of users. Article 12, second indent, of the Postal 
Directive allows Member States to deviate from the principle that tariffs of universal services 
must  be  cost  oriented  by  applying  a  uniform  national  tariff,  which  applies  irrespectively  of 
distance and other service costs, so as to better ensure social and territorial cohesion.  

As  highlighted  by  sector  studies,  the  mandatory  provision  of  uniform  tariffs  in  a  fully 
competitive environment may lead to increasing costs for and risks to the viability of certain 
services, as the universal service provider will risk loosing profitable business in those areas 
subject to competitive pressure. Sector studies also show that the uniform tariff is likely to be 
maintained  by  universal  service  providers  after  full  market  opening  for  a  large  number  of 
services.  

Under these circumstances, Member States should limit regulatory intervention to ensure the 
financially viable provision of the universal service. By allowing universal service providers 
the necessary flexibility to react to competition, any risks to the financial equilibrium of the 
universal  service  will  be  limited.  For  this  reason,  this  proposal  provides,  through  an 
amendment to Article 12, second indent, that Member States should limit tariff uniformity to 
items, including those for national and EU destinations, subject to single piece tariffs (such as 
the ones paid through stamps), which are mostly used by consumers and small enterprises and 
for which competition is expected to be limited. A definition of the term single piece tariff is 
included in Article 2, paragraph 20.  

The proposed amendment includes also the possibility for Member States to require uniform 
tariffs  whenever  other  legitimate  public  interests  are  at  stake,  such  as  in  cases  where  postal 
services are used for press distribution in absence of other distribution channels. This aspect is 
further specified in Recital 24. 

3.2.3.  Financing of the universal service (Article 7) 

In some  cases following  the  adoption  of accompanying measures to safeguard the universal 
service,  financing  the  residual  costs  of  the  provision  of  universal  service  may  still  be 
necessary  in  some  Member  States.  Through  a  new  Article  7  this  proposal  clarifies  the 

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alternatives available to Member States in cases where there is a need for external financing 
of the universal service. 

Member  States  should  enjoy  the  freedom  to  decide  the  method  of  financing  that  is  best 
adapted  to  their  particular  situation,  while  taking  care  at  the  same  time  of  avoiding  any 
disproportionate distortions to the functioning of the market.  

The  financing  alternatives  in  the  new  Article  7  include  public  compensation  through  direct 
state subsidies (paragraph 3) or, indirectly, financing through the use of public procurement 
procedures  (paragraph  2).  As  there  is  a  detailed  body  of  Community  rules  and  case  law 
regulating  public  procurement  and  public  compensation  for  services  of  general  economic 
interest, which also applies to the postal sector, it is not necessary to introduce any new rules 
in these areas.  

Finally,  the  proposed  paragraphs  3(b)  and  4  of  Article  7,  continue  to  provide  for  the 
possibility,  previously  included  in  Article  9  of  the  Postal  Directive,  to  introduce  a 
compensation  fund  to  compensate  for  the  unfair  burden  incurred  by  the  universal  service 
provider(s) in the provision of the service. To date, experience with the compensation fund as 
a mechanism for financing universal postal service has been very limited. However, this is not 
surprising,  as  the  substantial  reserved  area  still  in  place  in  most  Member  States  was  an 
obvious  source  of  financing.  Without  the  reserved  area  however,  it  is  likely  that  several 
Member States may revisit the need for a compensation fund, making it a potential safeguard 
that should be maintained. Article 7, paragraphs 3(b) and 4, also highlight the possibility of 
solving any residual net costs of universal service, through the introduction of a fee on service 
providers and/or users.  

3.3. 

Other measures included in the proposal 

3.3.1.  Authorisation and licensing (Article 9) 

Member States may continue to use authorisation and individual licenses whenever justified 
and proportionate to the objective pursued, subject to the provisions of Article 9 of the Postal 
Directive. However, as highlighted by the third Commission Report on the Application of the 
Postal  Directive,  further  harmonisation  of  the  conditions  that  may  be  introduced  and  the 
principles  applicable  to  those  conditions  and  procedures  appears  to  be  necessary  so  as  to 
reduce unjustified barriers to the provision of services in the internal market.  

This  proposal  provides  for  an  amendment  to  Article  9,  paragraph  2,  which  introduces  the 
following list of prohibited conditions, drawn from practical experience and sector studies: 

–  Limiting the number of licensees. This measure has been used in other network industries 
in  which  duplication  of  the  infrastructure  is  not  economically,  physically  or  socially 
desirable, reasons which do not apply in the postal sector.  

–  The  concurrent  requirement  to  contribute  to  a  sharing  mechanism  and  the  imposition  of 
universal service or quality obligations for the same quality, availability and performance 
requirements. The universal service obligations spread the uneconomic costs of the service 
between several companies while the compensation fund imposes a levy on companies to 
finance  the  uneconomic  cost  incurred  by  one  company,  making  its  combined  application 
unjustified. 

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–  Duplicate  conditions  which  are  applicable  to  undertakings  by  virtue  of  other,  non  sector 
specific,  national  legislation;  this  will  limit  unnecessary  administrative  costs  on  postal 
service providers.  

–  Disproportionate or unjustified technical or operational conditions. Any conditions aimed 
at, for instance, protecting the confidentiality of mail, or facilitating the return of wrongly 
delivered mail would continue to be acceptable.  

These  prohibitions  do  not  apply  to  designated  universal  service  provider(s),  which  may  be 
subject  to  a  different  type  of  regulation  as  they  may  have  to  meet  different  objectives  or 
operate under a distinct legal basis, such as public ownership. 

3.3.2.  Access to key postal infrastructure and services (Article 11a) 

Drawing  on  the  experience  of  some  Member  States,  this  proposal  introduces  a  new  Article 
11a in order to require Member States to assess whether, in a multi-operator environment, a 
number of elements of the postal infrastructure or services: 

–  may be indispensable for or greatly facilitate the provision of services by operators willing 

to compete with universal service provider(s); and/or  

–  benefit users and consumers by reducing the number of items which are wrongly addressed 
or cannot be returned to its sender, ensuring overall quality of mail and the protection of 
essential requirements to the benefit of all operators and users.  

As  the  legal  status  and  market  situation  of  these  elements  of  the  postal  infrastructure  or 
services  is  different  in  Member  States  (e.g.  owned  or  provided  exclusively  by  the  universal 
service  provider,  owned  or  provided  by  several  operators),  it  is  proposed  to  limit  this 
requirement  for  Member  States  to  that  of  adopting  an  informed  decision  on  the  need  and 
extent for regulation, the choice of the regulatory instrument and any eventual compensation 
that may be required.  

The proposed Article 11a does not modify the regulation of downstream access to the sorting 
and  delivery  part  of  the  network.  As  regards  the  latter,  Member  States  must  continue  to 
comply  with  Article  12,  fifth  indent,  and  may,  in  the  light  of  national  conditions,  introduce 
other  measures  to  ensure  access  to  the  public  postal  network  under  conditions  which  are 
transparent and non discriminatory.  

3.3.3.  Control of fair competition (Articles 12, sixth indent, 14) 

In  a  fully  competitive  environment,  Member  States  must  conduct  the  delicate  exercise  of 
providing sufficient freedom to universal service providers to adapt to competition and at the 
same  time,  ensure  adequate  monitoring  of  the  behaviour  of  the  likely  dominant  operator  in 
order to safeguard effective competition.  

Because  this  exercise  will  require  an  assessment  of  the  market  conditions,  institutional 
arrangements  and  oversight  capacities  of  every  Member  State,  it  is  appropriate  to  leave 
Member States the freedom to decide the precise regulatory mechanisms for the control of the 
incumbent operator, while maintaining a necessary minimum common ground. This justifies, 
on the one hand, the deletion of the requirement imposed on Member States to monitor cross-
subsidies  through  sector  specific  rules  and,  on  the  other,  the  maintenance  of  the  rules  on 
transparency of accounts. 

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Concerning  cross-subsidies,  and  the  absence  of  a  reserved  area  as  a  clear  source  of 
competitive distortions that justified current rules,  this proposal provides, therefore, through 
the proposed  deletion of Article 12, sixth indent, that Member States should decide on how 
best  to  ensure  that  the  behaviour  of  the  universal  service  provider,  which  will  often  be  a 
dominant operator in a market, does not lead to competitive distortions. Member States may 
for  that  purpose  establish  specific  ex  ante  controls  (as  required  by  the  current  Directive)  or 
rely on the ex-post application of competition law by competition authorities and/or national 
regulatory authorities. 

Concerning the rules on accounting transparency applicable to universal service provider(s), 
an  adapted  cost  accounting  separation  requirement  is  still  necessary  during  the  transition 
towards  a  competitive  market.  The  proposed  amendments  to  Article  14  reflect  the  new 
situation  where  there  will  no  longer  be  a  reserved  area.  Given  the  existence  of  cooperation 
between national regulatory authorities to develop best practices and common approaches in 
this  area  (e.g.  by  the  Committee  of  European  Postal  Regulators)  it  is  not  necessary,  in 
accordance  with  the  principles  of  better  regulation,  to  introduce  more  detailed  and  binding 
rules on cost allocation in the Directive.  

3.3.4.  Reinforcing consumer protection (Articles 12, first indent, 19, 22, 22a) 

In line with existing rules applicable to other service areas and in order to enhance consumer 
protection in an evolving market, this proposal provides, through an amendment to Article 19, 
to  extend  the  application  of  minimum  principles  concerning  complaint  procedures  beyond 
universal service provider(s).  

Consumer  interests  are  also  further  protected  through:  1)  the  enhanced  inter-operability 
between operators resulting from access to certain elements of infrastructure and services, as 
provided for in the proposed new Article 11a, as further explained above; 2) the requirement 
for  cooperation  between  national  regulatory  authorities  and  consumer  protection  bodies 
included in the proposed amendment to Article 22, second paragraph; 3) the clarification of 
the role and powers of national regulatory authorities to monitor and supervise the universal 
service in Article 22, third paragraph, and Article 22a, first paragraph. 

Finally,  given  the  importance  of  postal  services  for  blind  and  partially  sighted  persons  as 
consumers  of  postal  services,  it  its  proposed  to  confirm  in  Article  12,  first  indent,  that  the 
process of market opening should not curtail the continuing supply of certain free services for 
blind  and  partially  sighted  persons  introduced  by  the  Member  States  in  accordance  with 
applicable  international  obligations  established  in  the  framework  of  the  Universal  Postal 
Union.  

3.3.5.  Exercise of implementing powers by the Commission (Article 21) 

The Committee established by the Postal Directive is charged with assisting the Commission 
in the exercise of its implementing powers and, in particular, with the amendment of Annex 1 
concerning  quality  of  service  objectives  for  intra-Community  cross-border  services,  and 
adopting conditions of standardised quality measurement (cfr. Article 16 of the Directive).  

As  the  regulatory  functions  of  this  Committee  concern  the  amendment  of  non  essential 
elements of the Directive it is appropriate to align the rules that govern it with the regulatory 
procedure  recently  introduced  in  the  Council  Decision  laying  down  the  procedures  for  the 

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exercise  of  implementing  powers  conferred  on  the  Commission6,  which  provides  the 
European Parliament with additional mechanisms to scrutinise such measures.  

3.3.6.  National regulatory authorities (Article 22) 

The  role  of  national  regulatory  authorities  is  likely  to  remain  crucial,  in  particular  in  those 
Member  States  where  the  transition  to  competition  still  needs  to  be  completed.  In  order  to 
improve the effective functioning of those bodies, and drawing on the experience in similar 
regulated  areas  and  discussions  in  the  European  Committee  of  Postal  Regulators  as  well  as 
various sector studies, this proposal provides for the following amendments to Article 22: 

–  Structural separation of the regulatory functions from activities associated with ownership 
or control in an operator. In accordance with the principle of separation of regulatory and 
operational  functions,  Member  States  should  guarantee  the  independence  of  the  national 
regulatory authorities, in particular concerning functions associated with ownership where 
a  clear  conflict  of  interest  in  government  may  exist,  thereby  ensuring  the  impartiality  of 
their  decisions.  This  requirement,  which  exists  in  other  network  industries,  does  not 
necessarily  entail  the  creation  of  any  new  administrative  structures,  but  does  require  that 
there be a clear and stable separation of the functions exercised by different public bodies 
(Article 22, first paragraph). 

–  Transparency  in  the  allocation  of  regulatory  functions  and  cooperation  between  national 
bodies  exercising  regulatory  functions.  Due  to  the  frequent  involvement  of  different 
national bodies in the exercise of regulatory functions, it is proposed to require that further 
transparency,  and  hence  clarity,  is  introduced  in  the  allocation  of  their  tasks.  Due  to  the 
frequent overlap in the tasks of the bodies responsible for sector regulation, the application 
of competition rules and the protection of consumers, it is proposed to require these bodies 
to cooperate in order to better ensure the effective accomplishment of their tasks (Article 
22, first and second paragraph).  

–  Confirmation  of  the  right  to  appeal  against  decisions  made  by  national  regulatory 
authorities and of their temporary standing, in order to guarantee market clarity during the 
market opening process and without prejudice to Member State's division of competences 
within their national judicial systems and to the rights of legal entities or natural persons 
under national law (Article 22, third paragraph). 

–  Enhanced cooperation between EU national regulatory authorities, in order to provide legal 
support  and  impetus  to  the  existing  work  carried  out  by  existing  bodies,  such  as  the 
Committee  of  European  Postal  Regulators  and  the  Postal  Directive  Committee,  in 
promoting best practice and promoting harmonisation of regulatory practices in the internal 
market without necessarily requiring the creation of new administrative structures (Article 
22, second paragraph). 

3.3.7.  Provision of information to national Regulatory authorities (Article 22a) 

National  regulatory  authorities  need  to  gather  information  from  market  players  in  order  to 
carry out their tasks effectively. The absence of specific powers to collect information from 

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Council  Decision  1999/468/EC  of  28  June  1999  laying  down  the  procedures  for  the  exercise  of 
implementing  powers  conferred  on  the  Commission  (OJ  L  184,  17.7.1999,  p.  23),  as  amended  by 
Council Decision 2006/512/EC of 17 July 2006 (OJ L 200, 22.7.2006, p. 11). 

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postal  operators  has  been  continuously  highlighted  by  the  European  Committee  of  Postal 
Regulators, statistical bodies and sector studies as a major shortcoming for the enforcement of 
the Directive and implementing national rules. This proposal provides for the introduction of 
a new Article 22a to empower national regulatory authorities to collect information whenever 
proportionate and justified, including for statistical purposes. 

3.3.8.  Review and reporting on the application of the Postal Directive (Article 23) 

This proposal provides for the retention of regular monitoring and reporting on the application 
of  the  Directive  to  Council  and  Parliament  in  order  to  anticipate  any  further  regulatory 
measures  that  may  be  necessary  to  ensure  the  universal  service  and/or  the  market  opening 
process.  Drawing  on  past  experience,  it  is  proposed  to  amend  Article  23  to  extend  the 
reporting period from two to three years. This reporting period takes into account the pace of 
market  developments  and  social  aspects  of  the  application  of  the  Directive,  and  provides  a 
sufficient timeframe on which to base any policy recommendations. 

3.3.9.  Removal of expiring provision (Articles 26, 27)  

In  line  with  the  decision  to  remove  special  and  exclusive  rights  in  2009  (Article  7,  first 
paragraph), this proposal provides for the repeal of the existing expiring provision in Articles 
26, paragraph 2, and 27 of the Postal Directive. 

3.3.10.  Coherence and better regulation (Articles 1, 2, 9, 10, 11) 

This  proposal  provides  a  number  of  amendments  in  order  to  improve  the  legal  clarity  and 
coherence of the Postal Directive. 

–  Article  1,  second  indent:  the  proposed  amendment  is  coherent  with  the  amendment  to 

Article 7 to reflect that postal services may no longer be reserved;  

–  Article  2,  paragraph  6:  the  proposed  amendment  clarifies  the  scope  of  application  of  the 
Directive, and in particular that the Directive applies to all postal service providers and not 
only universal service providers;  

–  Article 2, paragraph 8: the proposed amendment is coherent with the amendment to Article 
7, as the concept of direct mail has only been used in connection with the services that may 
be reserved;  

–  Article 9, paragraph 5: the proposed amendment is coherent with the amendment to Article 
7, as the concept of direct mail has only been used in connection with the services that may 
be reserved; 

–  Title of Chapter 4: the proposed amendment to the tile of Chapter 4 is coherent with the 
amendment  to  Article  7  to  reflect  that  the  difference  between  reserved  and  non-reserved 
postal services no longer exists under this proposal;  

–  Article 10: the proposed amendments reflect the new numbering of the EC Treaty and also 
that  the  difference  between  reserved  and  non-reserved  postal  services  no  longer  exists 
under this proposal;  

–  Article 11: the proposed amendment reflects the new numbering of the EC Treaty; 

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–  Article  12,  fifth  indent:  the  term  'private'  is  deleted  as  the  fact  of  whether  a  customer  is 

public or private is irrelevant and may be misleading;  

–  Article  26,  paragraph  1:  the  proposed  deletion  of  Article  26(1)  is  coherent  with  the 
amendment to Article 7 to reflect that postal services may no longer be reserved and more 
'liberal' measures cannot therefore be introduced. 

In  order  to  facilitate  consistent  transposition  of  the  adapted  regulatory  framework,  the 
Commission  is  determined  to  overseeing  and  discussing  with  Member  States  the  proper 
transposition, implementation and enforcement of the new provisions of the Directive.  

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2006/0196 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

amending Directive 97/67/EC concerning the full accomplishment of the internal market 
of Community postal services 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission7, 

Having regard to the opinion of the European Economic and Social Committee8, 

Having regard to the opinion of the Committee of the Regions9, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty10, 

Whereas: 

(1) 

(2) 

7 
8 
9 
10 
11 
12 

The Council in its Resolution of 7 February 1994 on the development of Community 
Postal Services11 identified as one of the main objectives of Community postal policy 
the reconciling of the gradual, controlled opening to competition of the postal market 
with a sustainable guarantee of the provision of the universal service.  

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  service12,  established  a  regulatory 
framework for the postal sector at Community level, including measures to guarantee 
a  universal  service  and  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 
maintenance of the universal service, to be reduced in a gradual and progressive way, 
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.  

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C 48, 16.2.1994, p. 3. 
OJ  L  15,  21.1.1998,  p.  14.  Directive  as  last  amended  by  Regulation  (EC)  No  1882/2003  of  29 
September 2003 (OJ L 284, 31.10.2003, p. 1). 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Article 16 of the EC Treaty highlights the role played by services of general economic 
interest in the shared values of the Union as well as their role in promoting social and 
territorial cohesion. It states that care should be taken that such services operate on the 
basis of principles and conditions which enable them to fulfil their missions.  

The  measures  in  this  area  should  be  designed  in  such  a  way  that  the  tasks  of  the 
Community pursuant to Article 2 of the EC Treaty, namely, to promote throughout the 
Community  a  harmonious,  balanced  and  sustainable  development  of  economic 
activities,  a  high  level  of  employment  and  of  social  protection,  sustainable  and  non-
inflationary  growth,  a  high  degree  of  competitiveness  and  convergence  of  economic 
performance, the raising of the standard of living and quality of life, and economic and 
social cohesion and solidarity among Member States are achieved as objectives. 

In  its  Conclusions  concerning  the  mid-term  review  of  the  Lisbon  Strategy  the 
European  Council  of  22  and  23  March  2005  re-stated  the  importance  of  completing 
the internal market as an instrument to foster growth and create more and better jobs 
and the important role that effective services of general economic interest have to play 
in a competitive and dynamic economy. These conclusions remain applicable to postal 
services, as an essential instrument of communication, trade, and social and territorial 
cohesion. 

The  European  Parliament  Resolution  of  2  February  2006  highlighted  the  social  and 
economic  importance  of  efficient  postal  services  and  their  important  role  in  the 
framework of the Lisbon Strategy, indicating that reform measures undertaken so far 
have brought about significant positive developments in the postal sector, along with 
increased quality, more efficiency and better customer-orientation. 

In  accordance  with  Directive  97/67/EC,  a  prospective  study  assessing,  for  each 
Member State, the impact on universal service of the full accomplishment of the postal 
internal market in 2009 has been carried out. The Commission has also undertaken a 
thorough  review  of  the  Community  postal  sector,  including  the  commissioning  of 
studies on the economic, social and technological developments in the sector, and has 
consulted extensively with interested parties.  

According  to  the  prospective  study  the  basic  aim  of  safeguarding  the  sustainable 
provision  of  a  universal  service  matching  the  standard  of  quality  defined  by  the 
Member States in accordance with Directive 97/67/EC, can be secured throughout the 
Community by 2009 without the need for a reserved area. 

The  progressive  and  gradual  opening  of  postal  markets  to  competition  has  provided 
universal  service  providers  with  sufficient  time  to  put  in  place  the  necessary 
modernisation and restructuring measures required to ensure their long-term viability 
under the new market conditions, and enabled Member States to adapt their regulatory 
systems  to  a  more  open  environment.  Member  States  may  furthermore  avail 
themselves  of  the  opportunity  offered  by  the  period  of  transposition,  as  well  as  the 
substantial  time  necessary  for  the  introduction  of  effective  competition,  to  proceed 
with  further  modernisation  and  restructuring  of  the  universal  service  providers  as 
necessary. 

(10)  The prospective study shows that the reserved area should no longer be the preferred 
solution for the financing of the universal service. This assessment takes into account 

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the  interest  of  the  Community  and  its  Member  States  in  the  accomplishment  of  the 
internal  market  and  its  potential  for  delivering  growth  and  employment,  as  well  as 
ensuring  the  availability  of  an  efficient  service  of  general  economic  interest  for  all 
users. It is therefore appropriate to confirm the date of 1 January 2009 as the final step 
in the accomplishment of the internal market for postal services. 

(11)  There are a number of drivers for change within the postal sector, notably demand and 
changing customer needs, organisational change, automation and introduction of new 
technologies, substitution by electronic means of communication and market opening.  

(12)  Complete market-opening will help to expand the overall size of the postal markets; it 
will  further  contribute  to  maintaining  sustainable  and  quality  employment  within 
universal  service  providers  as  well  as  facilitating  the  creation  of  new  jobs  in  other 
operators,  new  entrants  and  associated  economic  activities.  The  present  Directive  is 
without  prejudice  to  the  competence  of  Member  States  to  regulate  employment 
conditions in the postal services sector. 

(13) 

Increased competitiveness should furthermore enable the postal sector to be integrated 
with  alternative  methods  of  communication  and  allow  the  quality  of  the  service 
provided to ever-more demanding users to be improved.  

(14)  The  developments  in  the  neighbouring  communications  markets  have  had  a  varied 
impact in different regions of the Community and segments of the population and the 
use of postal services. Territorial and social cohesion should be maintained, and taking 
into  account  that  Member  States  may  adapt  some  specific  service  features  to 
accommodate local demand by applying flexibility provided in Directive 97/67/EC, it 
is  appropriate  to  fully  maintain  the  universal  service  and  the  associated  quality 
requirements  set  out  in  the  said  Directive.  In  order  to  ensure  that  market  opening 
continues  to  benefit  all  users,  in  particular  consumers  and  small  and  medium  size 
enterprises,  Member  States  must  monitor  and  supervise  market  developments.  They 
must  take  appropriate  regulatory  measures,  available  under  the  Directive,  to  ensure 
that accessibility to postal services continues to satisfy the needs of users including, by 
ensuring, where appropriate, a minimum number of services at the same access point.  

(15)  Directive 97/67/EC established a preference for the provision of the universal service 
through  the  designation  of  universal  service  providers.  The  development  of  greater 
competition  and  choice  means  that  Member  States  should  have  further  flexibility  to 
determine the most efficient and appropriate mechanism to guarantee the availability 
of  the  universal  service,  while  respecting  the  principles  of  objectivity,  transparency, 
non discrimination, proportionality and least market distortion necessary to ensure the 
free provision of postal services in the internal market. Member States may apply one 
or a combination of the following: provision of the universal service by market forces, 
designation of one or several undertakings to provide different elements of universal 
service or to cover different parts of the territory and public procurement of services. 

(16) 

It is important for users to be fully informed about the universal services provided and 
for  undertakings  providing  postal  services  to  be  informed  about  the  rights  and 
obligations  of  universal  service  provider(s).  Member  States  shall  ensure  that 
consumers  remain  fully  informed  about  the  features  and  accessibility  to  the  specific 
services provided. It is however appropriate, in coherence with the enhanced flexibility 
of Member States to ensure the provision of the universal service in ways other than 

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the designation of the universal service provider(s), to allow Member States flexibility 
to decide how this information is made available to the public. 

(17) 

In the light of the studies carried out and with a view to unlocking the full potential of 
the internal market for postal services, it is appropriate to end the use of the reserved 
area and special rights as a way of ensuring the financing of the universal service.  

(18)  The  external  financing  of  the  residual  net  costs  of  universal  service  may  still  be 
necessary for some Member States. It is therefore appropriate to explicitly clarify the 
alternatives available to ensure the financing of the universal service, to the extent that 
this is needed and is adequately justified, while leaving Member States the choice of 
the  financing  mechanisms  to  be  used.  These  alternatives  include  the  use  of  public 
procurement procedures and, whenever universal service obligations entail net costs of 
universal service and represent an unfair burden for the designated undertaking, public 
compensation and cost sharing between service providers and/or users in a transparent 
fashion  by  means  of  contributions  to  a  compensation  fund.  Member  States  may  use 
other  means  of  financing  permitted  by  Community  Law,  such  as  deciding  that  the 
profits  accruing  from  other  activities  of  the  universal  service  providers  outside  the 
scope of the universal service are to be assigned in whole or in part to the financing of 
the net costs of the universal service, as long as they are compatible with the present 
Directive.  

(19) 

In  order  to  determine  which  undertakings  may  be  required  to  contribute  to  a 
compensation fund, Member States should consider whether the services provided by 
such  undertakings  may,  from  a  user's  perspective,  be  regarded  as  substitutable  to 
universal  services,  taking  into  account  the  characteristics  of  the  services,  including 
added  value  features,  and  their  intended  use.  In  order  to  be  considered  substitutable, 
the services do not necessarily have to cover all the features of the universal service, 
such  as  daily  delivery  or  complete  national  coverage.  In  order  to  comply  with  the 
proportionality  principle  when  determining  the  contribution  to  the  costs  of  the 
provision  of  universal  service  in  a  Member  State  asked  from  these  undertakings, 
Member States should use transparent and non discriminatory criteria such as the share 
of these undertakings in the activities falling within the scope of the universal service 
in this Member State. 

(20)  The  principles  of  transparency,  non-discrimination  and  proportionality  contained  in 
Directive 97/67/EC must continue to be applied to any financing mechanism and any 
decision  in  this  area  be  based  on  transparent,  objective  and  verifiable  criteria.  In 
particular, the net cost of universal service is to be calculated, under the responsibility 
of  the  national  regulatory  authority,  as  the  difference  between  the  net  costs  for  a 
designated undertaking operating with the universal service obligations and operating 
without  the  universal  service  obligations.  The  calculation  shall  take  into  account  all 
other relevant elements, including any market benefits which accrue to an undertaking 
designated  to  provide  universal  service,  the  entitlement  to  a  reasonable  profit  and 
incentives for cost efficiency. 

(21)  Member  States  should  be  allowed  to  use  authorisation  and  individual  licenses 
whenever  justified  and  proportionate  to  the  objective  pursued.  However,  as 
highlighted  by  the  third  Report  on  the  Application  of  Directive  97/67/EC,  further 
harmonisation  of  the  conditions  that  may  be  introduced  appears  necessary  to  reduce 
unjustified barriers to the provision of services in the internal market. In this context, 

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Member States may for example allow undertakings to choose between the obligation 
to provide a service or to contribute financially to the costs of this service provided by 
another  undertaking,  but  should  no  longer  be  allowed  to  impose  the  concurrent 
requirement  to  contribute  to  a  sharing  mechanism  and  the  imposition  of  universal 
service  or  quality  obligations  that  are  intended  to  serve  the  same  purpose.  It  is  also 
appropriate to clarify that some of the provisions on authorisation and licensing should 
not apply to designated universal service providers. 

(22) 

In  an  environment  where  several  postal  undertakings  provide  services  within  the 
universal service area, it is appropriate to require all Member States to assess whether 
some  elements  of  the  postal  infrastructure  or  certain  services  generally  provided  by 
universal  service  providers  should  be  made  accessible  to  other  operators  providing 
similar  services,  in  order  to  promote  effective  competition,  and/or  protect  users  and 
consumers  by  ensuring  the  overall  quality  of  the  postal  service.  As  the  legal  and 
market  situation  of  these  elements  or  services  is  different  in  Member  States  it  is 
appropriate to only require Member States to adopt an informed decision on the need, 
extent  and  choice  of  the  regulatory  instrument,  including  where  appropriate  on  cost 
sharing.  This  provision  is  without  prejudice  to  the  right  of  Member  States  to  adopt 
measures  to  ensure  access  to  the  public  postal  network  under  conditions  of 
transparency and non discrimination. 

(23)  Given  the  importance  of  postal  services  for  blind  and  partially  sighted  persons,  it  is 
appropriate  to  confirm  that  the  process  of  market  opening  should  not  curtail  the 
continuing  supply  of  certain  free  services  for  blind  and  partially  sighted  persons 
introduced  by  the  Member  States  in  accordance  with  applicable  international 
obligations. 

(24) 

(25) 

(26) 

In a fully competitive environment, it is important, both for the financial equilibrium 
of the universal service as well as for limiting market distortions, that the principle that 
prices reflect normal commercial conditions and costs is only departed from in order 
to protect public interests. This objective is achieved by continuing to allow Member 
States  to  maintain  uniform  tariffs  for  single  piece  tariff  mail,  the  service  most 
frequently  used  by  consumers  and  small  and  medium  size  enterprises.  Individual 
Member States may also maintain uniform tariffs for some other mail items to protect 
general public interest reasons, such as access to culture, regional and social cohesion. 

In  view  of  the  national  specificities  involved  in  the  regulation  of  the  conditions  in 
which  the  incumbent  universal  service  provider  must  operate  in  a  fully  competitive 
environment it is appropriate to leave Member States the freedom to decide how best 
to monitor cross-subsidies. 

In  view  of  the  transition  towards  a  fully  competitive  market,  it  is  appropriate  to 
continue  to  require  Member  States  to  maintain  the  obligation  on  universal  service 
providers  of  keeping  separate  and  transparent  accounts,  subject  to  the  necessary 
adaptations.  This  obligation  should  provide  national 
regulatory  authorities, 
competition authorities and the Commission with the information necessary to adopt 
decisions  related  to  the  universal  service  and  to  monitor  fair  market  conditions  until 
competition becomes effective. Cooperation between national regulatory authorities in 
continuing to develop benchmarks and guidelines in this area, should contribute to the 
harmonised application of these rules.  

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(27) 

In  line  with  existing  rules  in  other  service  areas  and  in  order  to  enhance  consumer 
protection,  it  is  appropriate  to  extend  the  application  of  minimum  principles 
concerning complaint procedures beyond universal service providers. With a view to 
increase the effectiveness of complaint handling procedures, it is appropriate that the 
Directive  encourages  the  use  of  out-of-court  settlement  procedures  as  set  out  in 
Commission  Recommendation  98/257/EC  of  30  March  1998  on  the  principles 
applicable to the bodies responsible for out-of court settlement of consumer disputes13 
and  Commission  Recommendation  of  4  April  2001  on  the  principle  for  out-of-court 
bodies  involved  in  the  consensual  resolution  of  consumer  disputes14.  Consumer 
interests  would  also  be  furthered  through  the  enhanced  inter-operability  between 
operators resulting from access to certain elements of infrastructure and services, and 
the requirement for cooperation between national regulatory authorities and consumer 
protection bodies.  

(28) 

It  is  appropriate  to  adjust  the  provision  concerning  implementing  powers  so  as  to 
reflect  the  amendments  made  to  Council  Decision  1999/468/EC  of  28  June  1999 
laying down the procedures for the exercise of implementing powers conferred on the 
Commission15. 

(29)  The role of national regulatory authorities is likely to remain crucial, in particular in 
those Member States where the transition to competition still needs to be completed. 
In accordance with the principle of separation of regulatory and operational functions, 
Member  States  should  guarantee  the  independence  of  the  national  regulatory 
authorities  thereby  ensuring  the  impartiality  of  their  decisions.  This  requirement  of 
independence  is  without  prejudice  to  the  institutional  autonomy  and  constitutional 
obligations of the Member States and to the principle of neutrality with regard to the 
rules in  Member States  governing  the  system of  property or ownership  laid down in 
Article 295 of the Treaty. National regulatory authorities should be endowed with all 
necessary  resources,  in  terms  of  staffing,  expertise  and  financial  means,  for  the 
performance of their tasks.  

(30)  Due  to  the  frequent  involvement  of  different  national  bodies  in  the  exercise  of 
regulatory  functions,  it  is  appropriate  to  introduce  transparency  in  the  allocation  of 
tasks  and  require  the  different  responsible  bodies  in  charge  of  sector  regulation,  the 
application of competition rules and consumer issues to cooperate in order to ensure 
the effective accomplishment of their tasks.  

(31)  Any  party  who  is  the  subject  of  a  decision  by  a  national  regulatory  authority  should 
have the right to appeal to a body that is independent of that authority. This body may 
be a court. This appeal procedure is without prejudice to the division of competences 
within  national  judicial  systems  and  to  the  rights  of  legal  entities  or  natural  persons 
under  national  law.  Pending  the  conclusion  of  these  procedures  there  is  a  need  to 
ensure the temporary standing of national regulatory authorities' decisions to guarantee 
legal and market security. 

13 
14 
15 

OJ L 115, 17.4.1998, p. 31. 
OJ L 109, 4.4.2001, p. 56. 
OJ  L  184,  17.7.1999,  p.  23.  Decision  as  amended  by  Decision  2006/512/EC  (OJ  L  200,  22.7.2006, 
p. 11). 

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(32)  National regulatory authorities should, where necessary, coordinate their actions with 
the regulatory bodies of other Member States and with the Commission in carrying out 
their  tasks  under  this Directive.  This  would promote the development of the internal 
market  for  postal  services  and  help  to  achieve  consistent  application,  in  all  Member 
States, of the provisions set out in this Directive, in particular in areas where national 
law  implementing  Community  law  gives  national  regulatory  authorities  considerable 
discretionary powers in application of the relevant rules. This cooperation could take 
place,  inter  alia,  in  the  Committee  established  by  Directive  97/67/EC  or  in  a  group 
comprising  European  regulators.  Member  States  should  decide  which  bodies  are 
national regulatory authorities for the purposes of this Directive. 

(33)  National  regulatory  authorities  need  to  gather  information  from  market  players  in 
order  to  carry  out  their  tasks  effectively.  Requests  for  information  should  be 
proportionate and not impose an undue burden on undertakings. Such information may 
also need to be gathered by the Commission, to allow it to fulfil its obligations under 
Community Law.  

(34) 

In  order  to  keep  the  European  Parliament  and  the  Council  informed  on  the 
development  of  the  internal  market  for  postal  services,  the  Commission  should 
regularly submit reports to those institutions on the application of Directive 97/67/EC.  

(35) 

In order to confirm the framework for the regulation of the sector the date of expiry of 
Directive 97/67/EC should be deleted. 

(36)  Since the objectives of the proposed action, namely achieving an internal market for 
postal  services,  safeguarding  a  common  level  of  universal  services  for  all  users  and 
setting  harmonised  principles  for  the  regulation  of  postal  services,  cannot  be 
sufficiently achieved by Member States and can therefore by reason of the scale and 
effects  of  the  action  to  be  taken,  be  better  achieved  at  Community  level,  the 
Community  may  adopt  measures  in  accordance  with the principles  of  subsidiarity as 
set out in Article 5 of the Treaty. In accordance with the principle of proportionality, 
as set out in that Article, this Directive does not go beyond what is necessary in order 
to achieve those objectives. 

(37)  Directive 97/67/EC should therefore be amended accordingly. 

(38)  This  Directive  is  consistent  with  other  current  Community  instruments  concerning 
services. If this Directive comes into conflict with a provision of another Community 
instrument, in particular Directive [2006/../EC] on Services in the internal market, the 
present Directive and its provisions shall prevail and fully apply to the postal sector. 

(39)  This  Directive  is  without  prejudice  to  the  application  of  the  Treaty  rules  on 
competition and on the freedom to provide services. Insofar as financing mechanisms 
would  involve  aid  granted  by  a  Member  State  or  through  state  aid  resources  in  any 
form  whatsoever  within  the  meaning  of  Article  87(1)  of  the  Treaty,  this  Directive  is 
without  prejudice  to  Member  States’  obligation  to  respect  the  State  aid  rules  of  the 
Treaty. 

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HAVE ADOPTED THIS DIRECTIVE: 

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

Article 1 

(1) 

In Article 1, the second indent is replaced by the following: 

'- the conditions governing the provision of postal services,' 

(2) 

Article 2 is amended as follows,  

(a) 

point 6 is replaced by the following: 

'6. postal item: an item addressed in the final form in which it is to be carried by a 
postal  service  provider.  In  addition  to  items  of  correspondence,  such  items  also 
include for instance books, catalogues, newspapers, periodicals and postal packages 
containing merchandise with or without commercial value;' 

(b) 

point 8 is deleted 

(c) 

the following point is added: 

'20. services provided at single piece tariff: postal services for which the tariff is set 
in the general terms and conditions of universal service providers for the transport of 
individual postal items.' 

(3) 

In the first subparagraph of Article 3(3), the introductory wording is replaced 
by the following:  

'They shall take steps to ensure that the universal service is guaranteed every working 
day  and  not  less  than  five  days  a  week,  save  in  circumstances  or  geographical 
conditions  deemed  exceptional  by  the  national  regulatory  authorities,  and  that  it 
includes as a minimum:' 

(4) 

Article 4 is replaced by the following: 

'Article 4 

1. 
Each Member State shall ensure that the provision  of the universal service is 
guaranteed  and  shall  notify  the  Commission  of  the  steps  it  has  taken  to  fulfil  this 
obligation.  The  Committee  established  under  Article  21  shall  be  informed  and 
monitor  the  evolution  of  the  measures  established  by  Member  States  to  ensure  the 
provision of the universal service.  

2.  Member States may choose to designate one or more undertakings as universal 
service providers for a part or all of the national territory and for different elements 
of  universal  service.  When  they  do  so,  they  shall  determine  in  accordance  with 
Community law the obligations and rights assigned to them and shall publish these 
obligations and rights. In particular Member States shall take measures to ensure that 

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the  conditions  under  which  universal  services  are  entrusted  are  based  on  objective, 
non–discriminatory, proportionate and least market distortion principles, and that the 
designation of undertakings as universal service providers is limited in time. Member 
States shall notify the identity of the universal service provider(s) they designate to 
the Commission. 

(5) 

In Article 5(2), 'Articles 36 and 56' is replaced by 'Articles 30 and 46'.  

(6) 

Article 6 is replaced by the following: 

'Article 6 

Member States shall take steps to ensure that users and undertakings providing postal 
services  are  regularly  given  sufficiently  detailed  and  up-to-date  information 
regarding  the  particular  features  of  the  universal  services  offered,  with  special 
reference to the general conditions of access to these services as well as to prices and 
quality standard levels. This information shall be published in an appropriate manner. 

Member States shall notify the Commission, how the information to be published in 
accordance with the first subparagraph is being made available.' 

(7) 

In Chapter 3, the title is replaced by the following: 

'CHAPTER 3 

Financing of universal services' 

(8) 

Article 7 is replaced by the following: 

'Article 7 

1.  With effect from 1 January 2009 Member States shall not grant or maintain in 
force  exclusive  or  special  rights  for  the  establishment  and  the  provision  of  postal 
services.  Member  States  may  finance  the  provision  of  universal  services  in 
accordance with one or more of the means provided for in paragraphs 2, 3 and 4, or 
in accordance with any other means compatible with the EC Treaty. 

2.  Member  States  may  ensure  the  provision  of  universal  services  by  procuring 
such services in accordance with applicable public procurement rules. 

3.  Where  a  Member  State  determines  that  the  universal  service  obligations,  as 
provided  for  by  this  Directive,  entail  a  net  cost  and  represent  an  unfair  financial 
burden for the universal service provider(s), it may: 

Introduce  a  mechanism  to  compensate  the  undertaking(s)  concerned  from 

(a) 
public funds;  

(b)  Share  the  net  cost  of  universal  service  obligations  between  providers  of 
services and/or users.  

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4.  Where  the  net  cost  is  shared  under  paragraph  3(b),  Member  States  may 
establish  a  compensation  fund  which  may  be  funded  by  service  providers'  and/or 
users'  fees,  and  is  administered  for  this  purpose  by  a  body  independent  of  the 
beneficiary or beneficiaries. Member States may make the granting of authorisations 
to  service  providers  under  Article  9(2)  subject  to  an  obligation  to  make  a  financial 
contribution to that fund or to comply with universal service obligations. Only those 
services set out in Article 3 may be financed in this way. 

5.  Member  States  shall  ensure  that  the  principles  of  transparency,  non-
discrimination  and  proportionality  are  respected  in  establishing  the  compensation 
fund and when fixing the level of the financial contributions referred to in paragraphs 
3 and 4. Decisions taken under paragraphs 3 and 4 shall be based on objective and 
verifiable criteria and be made public.' 

(9) 

In Chapter 4, the title is replaced by the following: 

'CHAPTER 4 

Conditions governing the provision of postal services and access to the network' 

(10)  Article 9 is replaced by the following: 

'Article 9 

1. 
For services which are outside the scope of the universal service as defined in 
Article  3,  Member  States  may  introduce  general  authorisations  to  the  extent 
necessary in order to guarantee compliance with the essential requirements. 

2. 
For services which are within the scope of the universal service as defined in 
Article  3,  Member  States  may  introduce  authorisation  procedures,  including 
individual licences, to the extent necessary in order to guarantee compliance with the 
essential requirements and to safeguard the universal service. 

The granting of authorisations may: 

–  where appropriate, be made subject to universal service obligations, 

–  if  necessary,  impose  requirements  concerning  the  quality,  availability  and 

performance of the relevant services, 

–  where appropriate, be subject to an obligation to make a financial contribution to 

the sharing mechanisms referred to in Article 7.  

Except  in  the  case  of  undertakings  that  have  been  designated  as  universal  service 
providers in accordance with Article 4, authorisations may not: 

–  be limited in number, 

–  for  the  same  quality,  availability  and  performance  requirements  impose  on  a 
service  provider  universal  service  obligations  and,  at  the  same  time,  financial 
contributions to a sharing mechanism,  

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–  duplicate conditions which are applicable to undertakings by virtue of other, non 

sector specific, national legislation, 

–  impose technical or operational conditions other than those necessary to fulfil the 

obligations of this Directive. 

3. 
The procedures, obligations and requirements referred to in paragraphs 1 and 2 
shall  be  transparent,  accessible,  non-discriminatory,  proportionate,  precise  and 
unambiguous,  made  public  in  advance  and  based  on  objective  criteria.  Member 
States shall ensure that the reasons for refusing an authorisation in whole or in part 
are communicated to the applicant and must establish an appeal procedure.' 

(11)  Paragraph 1 of Article 10 is replaced by the following:  

'1. 
The  European  Parliament  and  the  Council,  acting  on  a  proposal  from  the 
Commission and on the basis of Articles 47(2), 55 and 95 of the Treaty, shall adopt 
the measures necessary for the harmonisation of the procedures referred to in Article 
9 governing the commercial provision of postal services to the public.' 

(12) 

In Article 11, 'Articles 57(2), 66 and 100a' is replaced by 'Articles 47(2), 55 
and 95'. 

(13)  The following Article 11a is inserted: 

'Article 11a 

Whenever  necessary  to  protect  the  interest  of  users  and/or  to  promote  effective 
competition, and in the light of national conditions, Member States shall ensure that 
transparent  and  non-discriminatory  access  conditions  are  available  to  the  following 
elements of postal infrastructure or services: postcode system, address database, post 
office  boxes,  collection  and  delivery  boxes,  information  on  change  of  address,  re-
direction service, return to sender service.' 

(14)  Article 12 is amended as follows:  

(a) 

the first indent is replaced by the following: 

'-  prices  must  be  affordable  and  must  be  such  that  all  users  have  access  to  the 
services provided. Member States may maintain or introduce free postal service for 
blind and partially sighted persons,' 

(b) 

The second indent is replaced by the following: 

'- prices must be cost-oriented and stimulate efficiency gains; whenever necessary for 
reasons  relating  to  the  public  interest,  Member  States  may  decide  that  a  uniform 
tariff should be applied throughout their national territory and/or to the territories of 
other Member States, to services provided at single piece tariff and to other items,' 

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(c) 

The last sentence of the fifth indent is replaced by the following: 

'Any  such  tariffs  shall  also  be  available  to  customers  who  post  under  similar 
conditions,' 

(d) 

The sixth indent is deleted. 

(15)  Article 14 is replaced by the following:  

'Article 14 

1.  Member States shall take the measures necessary to ensure that the accounting 
of the universal service providers is conducted in accordance with the provisions of 
this Article. 

The  universal  service  providers  shall  keep  separate  accounts  within  their 
2. 
internal  accounting  systems  to  clearly  distinguish  between  services  and  products 
which  receive  or  contribute  to  the  financial  compensation  for  the  net  costs  of  the 
universal  service  and  those  services  and  products  which  do  not.  This  accounting 
separation  shall  allow  Member  States  to  calculate  the  net  cost  of  the  universal 
service.  Such  internal  accounting  systems  shall  operate  on  the  basis  of  consistently 
applied and objectively justifiable cost accounting principles. 

The accounting systems referred to in paragraph 2 shall, without prejudice to 

3. 
paragraph 4, allocate costs in the following manner: 

costs which can be directly assigned to a particular service or product shall be 

(a) 
so assigned; 

common  costs,  that  is  costs  which  cannot  be  directly  assigned  to  a  particular 

(b) 
service or product, shall be allocated as follows: 

(i)  whenever  possible,  common  costs  shall  be  allocated  on  the  basis  of  direct 
analysis of the origin of the costs themselves; 

(ii)  when direct analysis is not possible, common cost categories shall be allocated 
on the basis of an indirect linkage to another cost category or group of cost categories 
for which a direct assignment or allocation is possible; the indirect linkage shall be 
based on comparable cost structures; 

(iii)  when neither direct nor indirect measures of cost allocation can be found, the 
cost category shall be allocated on the basis of a general allocator computed by using 
the ratio of all expenses directly or indirectly assigned or allocated, on the one hand, 
to each of the universal services and, on the other hand, to the other services. 

Other cost accounting systems may be applied only if they are compatible with 
4. 
paragraph  2  and  have  been  approved  by  the  national  regulatory  authority.  The 
Commission shall be informed prior to their application. 

5. 
National  regulatory  authorities  shall  ensure  that  compliance  with  one  of  the 
cost  accounting  systems  described  in  paragraphs  3  or  4  is  verified  by  a  competent 

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body  which  is  independent  of  the  universal  service  provider.  Member  States  shall 
ensure that a statement concerning compliance is published periodically. 

6. 
The national regulatory authority shall keep available, to an adequate level of 
detail,  information  on  the  cost  accounting  systems  applied  by  a  universal  service 
provider, and shall submit such information to the Commission on request. 

7. 
On  request,  detailed  accounting  information  arising  from  these  systems  shall 
be  made  available  in  confidence  to  the  national  regulatory  authority  and  to  the 
Commission. 

8.  Where  a  given  Member  State  has  not  established  a  financing  mechanism  for 
universal  service  provision,  as  permitted  under  Article  7,  and  where  the  national 
regulatory  authority  is  satisfied  that  none  of  the  designated  universal  service 
providers in that Member State is in receipt of State assistance, hidden or otherwise, 
and that competition in the market is fully effective, the national regulatory authority 
may  decide  not  to  apply  the  requirements  of  this  Article.  The  national  regulatory 
authority shall inform the Commission in advance of taking any such decision.' 

(16)  Article 19 is replaced by the following:  

'Article 19 

Member States shall ensure that transparent, simple and inexpensive procedures are 
made  available  by  undertakings  providing  postal  services  for  dealing  with  postal 
users'  complaints,  particularly  in  cases  involving  loss,  theft,  damage  or  non-
compliance  with  service  quality  standards  (including  procedures  for  determining 
where responsibility lies in cases where more than one operator is involved). 

Member States shall adopt measures to ensure that the procedures referred to in the 
first  subparagraph  enable  disputes  to  be  settled  fairly  and  promptly  with  provision, 
where warranted, for a system of reimbursement and/or compensation. 

Member  States  shall  also  encourage  the  development  of  independent  out  of  court 
schemes  for  the  resolution  of  disputes  between  undertakings  providing  postal 
services and consumers. 

Without prejudice to other possibilities of appeal or means of redress under national 
and  Community  legislation,  Member  States  shall  ensure  that  users,  acting 
individually  or,  where  permitted  by  national  law,  jointly  with  organisations 
representing the interests of users and/or consumers, may bring before the competent 
national  authority  cases  where  users'  complaints  to  undertakings  providing  services 
within the scope of the universal service have not been satisfactorily resolved. 

In accordance with Article 16, Member States shall ensure that the universal service 
providers  and,  wherever  appropriate,  undertakings  providing  services  within  the 
scope  of  the  universal  service,  publish,  together  with  the  annual  report  on  the 
monitoring  of  their  performance,  information  on  the  number  of  complaints  and  the 
manner in which they have been dealt with.' 

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(17)  Article 21 is replaced by the following: 

1. 

The Commission shall be assisted by a committee. 

'Article 21 

2.  Where  reference  is  made  to  this  Article,  Articles  5a  and  7  of  Decision 
1999/468/EC shall apply. 

3. 

The Committee shall adopt its rules of procedure.' 

(18)  Article 22 is replaced by the following:  

'Article 22 

1. 
Each Member State shall designate one or more national regulatory authorities 
for the postal sector that are legally separate from and operationally independent of 
the postal operators. Member States that retain ownership or control of undertakings 
providing postal services shall ensure effective structural separation of the regulatory 
functions from activities associated with ownership or control. 

Member  States  shall  inform  the  Commission  which  national  regulatory  authorities 
they  have  designated  to  carry  out  the  tasks  arising  from  this  Directive.  They  shall 
publish  the  tasks  to  be  undertaken  by  national  regulatory  authorities  in  an  easily 
accessible form, in particular where those tasks are assigned to more than one body. 
Member  States  shall  ensure,  where  appropriate,  consultation  and  cooperation 
between those authorities and national authorities entrusted with the implementation 
of competition law and consumer law, on matters of common interest.  

The  national  regulatory  authorities  shall  have  as  a  particular  task  ensuring 
2. 
compliance  with  the  obligations  arising  from  this  Directive,  in  particular  by 
establishing  monitoring  and  regulatory  procedures  to  ensure  the  provision  of  the 
universal  service.  They  may  also  be  charged  with  ensuring  compliance  with 
competition rules in the postal sector. 

The  national  regulatory  authorities  of  the  Member  States  shall  work  in  close 
collaboration and shall provide mutual assistance in order to facilitate application of 
this Directive. 

3.  Member  States  shall  ensure  that  effective  mechanisms  exist  at  national  level 
under which any user or undertaking providing postal services who is affected by a 
decision of a national regulatory authority has the right to appeal against the decision 
to an appeal body which is independent of the parties involved. Pending the outcome 
of  any  such  appeal,  the  decision  of  the  national  regulatory  authority  shall  stand, 
unless the appeal body decides otherwise.'  

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(19)  After Article 22, the following Chapter title is inserted: 

'CHAPTER 9a 

Provision of information' 

(20)  The following Article 22a is inserted: 

'Article 22a 

1.  Member States shall ensure that undertakings providing postal services provide 
all  the  information,  including  financial  information  and  information  about  the 
provision of the universal service, necessary for the following purposes: 

for national regulatory authorities to ensure conformity with the provisions of, 

(a) 
or decisions made in accordance with, this Directive; 

(b) 

for clearly defined statistical purposes.  

Undertakings  shall  provide  such  information  promptly  on  request  and  within 
2. 
the timescales and to the level of detail required by the national regulatory authority. 
The information requested by the national regulatory authority shall be proportionate 
to  the  performance  of  its  tasks.  The  national  regulatory  authority  shall  give  the 
reasons justifying its request for information.' 

(21)  Article 23 is replaced by the following:  

'Article 23 

Every  three  years,  on  the  first  occasion  no  later  than  31  December  2011,  the 
Commission shall submit a report to the European Parliament and the Council on the 
application  of 
information  about 
developments  in  the  sector,  particularly  concerning  economic,  social,  employment 
patterns  and  technological  aspects,  as  well  as  about  quality  of  service.  The  report 
shall  be  accompanied  where  appropriate  by  proposals  to  the  European  Parliament 
and the Council.' 

the  appropriate 

this  Directive, 

including 

(22)  Article 26 is deleted. 

(23)  Article 27 is deleted. 

Article 2 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  31  December  2008  at  the 
latest.  They  shall  forthwith  communicate  to  the  Commission  the  text  of  those 
provisions and a correlation table between those provisions and this Directive. 

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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 text of the main provisions 
of national law which they adopt in the fields covered by this Directive. 

This Directive shall enter into force on the day of its publication in the Official Journal of the 
European Union. 

Article 3 

This Directive is addressed to the Member States. 

Article 4 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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