Negative price spiral on German mail market to end

The Hague / Ratingen – The High Administrative Court has confirmed the ruling of the Bundesnetzagentur against Deutsche Post and First Mail yesterday. With immediate effect Deutsche Post must stop its anticompetitive behaviour through its budget subsidiary First Mail. This outcome stops the destructive negative price spiral and is an important step on the path to break even of TNT Post Germany in 2013.

According to the decision of the Bundesnetzagentur the prices charged for First Mail products were below costs, predatory and abusively compromised the business opportunities of competitors. This means that Deutsche Post itself or through subsidiaries cannot undermine the price floor set by Bundesnetzagentur.
Harry Koorstra, CEO of PostNL, states: “As the main challenger to the postal incumbent, TNT Post Germany wants to lead the development of the German market for business mail. Free and fair competition is necessary condition for this development.”