Will the new Postal Act create more competition in the mail market? A legal and economic expert opinion commissioned by the Bundesverband für Briefdienste [BDD] with the collaboration of our partner Prof. Dr. Justus Haucap says: Yes! The amendment to the Postal Act can prevent the ex-monopolist Deutsche Post AG (DPAG) from exploiting its market power and charging competitors excessive prices for the use of the group's own mail delivery network ("price-cost squeeze" (PKS)). DPAG is already required by law to deliver competitors' presorted letters via its delivery network. Under the new Postal Act, the Federal Network Agency can now carry out effective PKS charge monitoring. This means that an abuse of market power can be identified if the margin between the charge for an access service and the corresponding retail charge is not sufficient to enable an efficient company to achieve an appropriate margin.
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