EC TO TAKE THIRD LOOK AT DEUTSCHE POST
The European Commission is planning to open another investigation into the business activities of Deutsche Post AG, this time to determine whether the national postal company turned global logistics giant has used its dominant market position to discourage competition in Germany’s transport markets.
The EC will formally announce its objections by the end of this month, European news sources have reported.
New proceedings come as the EC nears the end of an investigation into the German government’s funding of Deutsche Post’s parcel business, which some say has been subsidized illegally by state money. Observers have said they do not expect a negative ruling.
The EC opened in May a separate investigation into alleged Deutsche Post practices of over-charging German companies for cross-border mail.
The EC investigations are casting a growing shadow over Deutsche Post’s planned initial public offering of stock in Frankfurt this fall. However, the company said it expects the EC’s concerns to be cleared up by the end of summer and to proceed with its IPO in November.