European Union Rules Slovakian Law which Remonopolized Postal Services Is Illegal
The European Union (EU) ruled on October 8 that a Slovakian law that reserved the right to deliver hybrid mail to the incumbent postal operator, Slovenska Posta, infringed on anti-trust laws.
Hybrid mail is a specific type of mail, in which the content is electronically transferred from the sender to the postal service operator, who prints, envelopes, sorts and delivers the postal items. Hybrid mail is important to companies who regularly send large amounts of mail, such as invoices.
In the Slovak Republic, the delivery of hybrid mail was open to competition and several private companies were active in that sector. In February 2008, the Slovak Republic amended its postal laws, reserving the delivery of hybrid mail to Slovenska Posta. Private operators were prevented from sending hybrid mail, and therefore suffered financial losses.
The Slovak Republic, upon notification of the investigation of the amended postal laws, argued the new laws were necessary in order to fund the universal postal service under the third postal directive. The third postal directive set the clock ticking for abolishing postal service monopolies in the EU. The Slovak Republic also claimed that the only part of the services of the hybrid mail companies that were affected by the new laws were the delivery portion of the service. The hybrid mail companies were still free, it claimed, to print, fill the envelopes and sort the mail, just not deliver it.
The EU dismissed the Republic’s claims, finding that the remonopolization of the hybrid mail services harmed consumers and businesses, as well as risked losing advances already achieved.
The European Court of Justice had previously ruled that the extension of a statutory monopoly into neighboring but competitive markets is incompatible with Articles 82 (concerning the abuse of dominant market positions) and 86 (anti-trust rules) of the European Commission Treaty. The EU’s postal directive allows monopolies if that is the only way in which to maintain service, but that would not apply in this case since there had previously been a competitive market. The EC found that neither the Slovak Republic nor Slovenska Posta had been able to demonstrate that the reservation of hybrid mail services was necessary to finance the universal postal service.
The European Commission’s decision is directly binding on the country. The Slovak Republic could decide to appeal the decision to a European court in Luxembourg, but in the meantime has one month to inform the Commission of any measures taken to enable the hybrid mail market’s reopening to competitors.
The EU’s decision comes in the wake of a long battle by the EU to open up mail services to competition in member states. This is due to happen by 2011, but there are concerns that some countries are backsliding.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
Hybrid mail is a specific type of mail, in which the content is electronically transferred from the sender to the postal service operator, who prints, envelopes, sorts and delivers the postal items. Hybrid mail is important to companies who regularly send large amounts of mail, such as invoices.
In the Slovak Republic, the delivery of hybrid mail was open to competition and several private companies were active in that sector. In February 2008, the Slovak Republic amended its postal laws, reserving the delivery of hybrid mail to Slovenska Posta. Private operators were prevented from sending hybrid mail, and therefore suffered financial losses.
The Slovak Republic, upon notification of the investigation of the amended postal laws, argued the new laws were necessary in order to fund the universal postal service under the third postal directive. The third postal directive set the clock ticking for abolishing postal service monopolies in the EU. The Slovak Republic also claimed that the only part of the services of the hybrid mail companies that were affected by the new laws were the delivery portion of the service. The hybrid mail companies were still free, it claimed, to print, fill the envelopes and sort the mail, just not deliver it.
The EU dismissed the Republic’s claims, finding that the remonopolization of the hybrid mail services harmed consumers and businesses, as well as risked losing advances already achieved.
The European Court of Justice had previously ruled that the extension of a statutory monopoly into neighboring but competitive markets is incompatible with Articles 82 (concerning the abuse of dominant market positions) and 86 (anti-trust rules) of the European Commission Treaty. The EU’s postal directive allows monopolies if that is the only way in which to maintain service, but that would not apply in this case since there had previously been a competitive market. The EC found that neither the Slovak Republic nor Slovenska Posta had been able to demonstrate that the reservation of hybrid mail services was necessary to finance the universal postal service.
The European Commission’s decision is directly binding on the country. The Slovak Republic could decide to appeal the decision to a European court in Luxembourg, but in the meantime has one month to inform the Commission of any measures taken to enable the hybrid mail market’s reopening to competitors.
The EU’s decision comes in the wake of a long battle by the EU to open up mail services to competition in member states. This is due to happen by 2011, but there are concerns that some countries are backsliding.
About the author: Jason Hardy is an avid writer on legal issues, including international writing about many subjects including european antitrust lawsuits. Eu competition law interests Jason particularly. He resides in Seattle, Washington.
Labels: eu competition law, eu law, european antitrust lawsuits, mail, post, postal
posted by European Antitrust Law at
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