PostNL concerned about adverse effects of measures limiting its competitive position

Financial impact PostNL could add-up to €30 million - €50 million in period of three to four years

The Hague, 1 October 2015 - The Dutch Authority for Consumers and Markets (ACM) recently published a couple of decisions which regulate access of other postal operators to PostNL’s network. Also, a clearer view on the possible measures of ACM in its conclusion on significant market power has arisen. PostNL is concerned that the consequence of these decisions and possible measures could hamper the reliability and accessibility of postal delivery in the Netherlands. PostNL estimates that the financial impact for PostNL could add-up to €30 million - €50 million in a period of three to four years, with first effects expected to be visible in 2016.

Impact on postal market

PostNL is concerned about the possible adverse consequences of the decisions and possible measures for the postal market as these stimulate the resale of PostNL services rather than competition between postal networks. This creates the possibility for postal operators to collect mail from smaller customers and offer these to PostNL for discounts that are intended for large customers. PostNL expects the erosion of its tariff structure, increased complexity and additional operating costs. On the longer term, this could result in price increases, accelerated decline of the postal market and pressure on future innovations.

Financial impact

The decisions recently taken by ACM concern a tender of the Municipality of Rotterdam and the 2015 Tariffs. Following consultation, the details as to how these decisions will have to be implemented have become clearer to PostNL. With that, a picture has also emerged of the potential consequences of the proposed measures regarding significant market power. PostNL is now in a position to estimate the potential financial impact in the medium term. PostNL is making every effort to keep the financial impact at the lower end of the bandwith.

Dialogue with ACM

PostNL is arguing for more proportionality and balance in the decisions and measures concerning the 24 hours bulk mail volumes. The challenge is to ensure that there is healthy competition without effects that will cause unintended damage to the postal market. This is particularly important in such a strongly declining market. The company is in ongoing talks with ACM about this. It remains our common interest to safeguard a reliable and accesible postal network in the Netherlands; also for the future.