EC Statement: Competition - Commission initiates proceedings against Deutsche Post AG for abuse of a dominant position
( August 8, 2000, 11:34 GMT | Official Statement) -- Extract: In response to a number of complaints, and a judgment in the Court of First Instance finding that the Commission had wrongly failed to act in the matter, the Commission has initiated formal proceedings against the German postal operator Deutsche Post AG for abuse of its dominant position.In response to a number of complaints, and a judgment in the Court of First Instance finding that the Commission had wrongly failed to act in the matter, the Commission has initiated formal proceedings against the German postal operator Deutsche Post AG for abuse of its dominant position. These proceedings are concerned in the first place with Deutsche Post's pricing of parcel delivery services for mail-order business. The Commission's preliminary enquiries suggest that Deutsche Post allows large mail-order traders substantial discounts if they undertake to send all their parcels through Deutsche Post. They also suggest that Deutsche Post does not come anywhere near covering the costs of its mail-order parcel services. This means that no private provider of parcel services to mail-order firms has been able to achieve any firm foothold in Germany. The proceedings likewise question the postage charged by Deutsche Post for the letters it delivers under its monopoly rights. At this stage the Commission is asking Deutsche Post to explain why it is that even taking account of quality of service and density of population German customers pay the highest postage in Europe....
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