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Parcel to Germany: Deutsche Post can keep state cash

Parcel Delivery Video Transcript

Those sending a parcel to Germany may be interested to learn that Deutsche Post will not be made to repay state aid and interest that ran into the billions of euros, after the company defeated a regulatory challenge at the European Court of Justice.

Bloomberg reports that Deutsche Post will be allowed to keep the money after the court in Luxembourg dismissed an appeal by the European Commission, over a dispute that has lasted more than 15 years.

In 1994, United Parcel Service complained that the organisation had offered anti-competitive rebates to its customers, thereby undercutting private businesses.

However, following the recent ruling Deutsche Post will be allowed to keep some €1.15 billion (£0.74 billion), as the final figure stands after the addition of interest.

Commission spokeswoman Amelia Torres told Bloomberg via e-mail that the commission will carefully study the ruling, following another probe in 2007 over subsidies to the postal operator which handles parcel to Germany operations.

The investigation will "comprehensively address all potential distortions of competition resulting from the total amount of state resources granted to Deutsche Post", the news provider reports.ADNFCR-2658-ID-19936312-ADNFCR

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