ACM investigates antitrust concerns for smaller postal companies

The Netherlands Authority for Consumers and Markets (ACM) has decided to further investigate possible problems in the market for transporting unsorted mail. The amended Dutch Postal Act recently granted ACM the ability to do so. More specifically, it is about mail for next-day delivery.

Dutch postal-service company Sandd, the biggest rival of the largest postal-service company PostNL, is not active in this market segment. This means that business senders of mail are only able to choose between PostNL, and smaller local and regional postal companies. Since these companies are not able to deliver mail nationwide, they have to call in other postal service companies – usually PostNL – for part of their mail. This dependence may pose antitrust risks such as high prices or unfavorable conditions for smaller postal service companies. This was revealed by the consultation that ACM carried out following the amendment of the Postal Act.

Since unsorted mail covers two thirds of the Dutch postal market, and since PostNL has a considerable market share in that segment, ACM wishes to carry out a market analysis to identify in greater detail the risks in this market. On the basis of the results of that market analysis, ACM may impose obligations on a dominant market participant in order to improve competition in the postal market.

Background

On 1 January 2014, the Dutch Postal Act 2009 was amended with the aim to promote competition in the postal market. When problems occur in the postal market, ACM is authorized to impose obligations on dominant market participants in order to enable other market participants to provide their postal services under competitive conditions.

From 13 January through 7 February 2014, ACM carried out a public consultation for the amended Postal Act. In this consultation, interested companies and organizations were given the opportunity to inform ACM what problems they see in the postal market.