Overview
- In a sector report released December 10, the Monopolkommission says steeply falling letter volumes make Germany’s current postal framework unsustainable.
- The panel cautions that granting Deutsche Post an exclusive VAT exemption for business mail would likely wipe out most competitors that now hold only about 15% of the market.
- Recommendations include cutting universal-service requirements to five delivery days per week to lower costs and reflect reduced demand.
- The report urges the federal government to consider divesting its roughly 17% stake in Deutsche Post held via KfW to bolster neutral regulation.
- Competitors and their trade group welcomed the findings, while Deutsche Post defended its VAT status as tied to universal-service obligations and noted ongoing litigation over tax certificates for rivals.