The 2015 Postal Rate Increase by Deutsche Post Was Illegal

The Federal Association of Parcel and Express Logistics (BIEK) has achieved a significant success against Deutsche Post at the Federal Administrative Court in Leipzig. The court ruled that the postal rate increase of 2015, as well as the cross-subsidization of parcel services, was illegal.

(Berlin) In its ruling dated May 28, 2020, the Federal Administrative Court in Leipzig decided on the appeal of the Federal Association of Parcel and Express Logistics (BIEK): The postal rate increase by Deutsche Post (DPAG) in 2015 was illegal.

The Federal Administrative Court followed a central criticism of the BIEK regarding the approval of DPAG postal rates by the Federal Network Agency, after the Administrative Court in Cologne had previously dismissed the BIEK’s lawsuit.

“Today’s ruling is groundbreaking for consumers and competition,” said Marten Bosselmann, Chairman of the BIEK. “It is clear: The existing Postal Act urgently needs to be modernized. The government must finally fulfill its promise and present a draft for the amendment of the Postal Act,” emphasized Bosselmann. For nearly 20 years, the BIEK has fought for high court decisions – first regarding the rate approval in 2002, then in 2015. “It is truly time for federal politics and the regulator to orient their postal policy actions towards clear competition-friendly principles. It is not a good sign when misdevelopments have to be corrected repeatedly in lengthy procedures,” said Bosselmann.

The Federal Administrative Court particularly considers the change in the method for determining the profit surcharge from 2015 to be inadmissible: At that time, the Postal Fee Regulation was amended by the Federal Ministry for Economic Affairs and Energy to secure a higher profit for DPAG from postal rates. This should not have been allowed. The amendment to the regulation is, according to the Federal Administrative Court in its press release today, ineffective.

In 2015, the BIEK sued against the approval of the increase in postal rates by Deutsche Post by the Federal Network Agency. The lawsuit was not only about the increase in the profit surcharge but also about the possibility for DPAG to partially finance the costs of its parcel products through postal rates in the so-called universal service. This allows Deutsche Post to lower parcel prices and thereby distort competition in the parcel markets.

Marten Bosselmann: “Real competition is the guarantee for consumer-friendly services. For this, we need a modern Postal Act that abolishes the unjustified privileges of Deutsche Post. The letter and parcel markets must finally be strictly separated, and a clear dumping ban for parcel shipments must be introduced.”

Photo: Pixabay / Gerd Altmann

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