Dutch postal company PostNL put competitors at a disadvantage in tender process

Dutch postal company PostNL has violated the Dutch Postal Act, which was revealed by the tender process for postal services of the city of Rotterdam, the second largest city in the Netherlands. PostNL failed to share important tariff information with other postal companies, as a result of which they were unable to submit proper bids. In addition, PostNL also failed to make their competitors an offer (for using PostNL’s infrastructure for mail delivery), and in this specific case, no offer to rival company Van Straaten Post. The Netherlands Authority for Consumers and Markets (ACM) has imposed two orders subject to periodic penalty payments with a maximum of EUR 1 million on PostNL in order to stop these violations. PostNL had filed for an injunction against publication of this decision. Yesterday, however, the court turned down PostNL’s request.

Postal companies are dependent on PostNL’s national network for mail that they are unable to deliver themselves using their own networks. With regard to these services to rival companies, PostNL is not allowed to use other conditions (and tariffs) than the ones it offers its own customers. Moreover, the other postal companies must be informed of those conditions in order to be able to prepare their own bids.

ACM has ruled that Van Straaten Post’s complaint is justified. Henk Don, Member of the Board of ACM, explains: “Because of PostNL’s actions, it was impossible for Van Straaten Post and other postal companies to compete with PostNL on equal terms. As such, postal companies have been put at a disadvantage in terms of their ability to submit competitive bids. At the end of the day, customers will pay the price.” It is up to the city of Rotterdam to determine whether or not these violations had any influence on the final outcome of the tender process. What is clear, however, is that competition has been harmed because of PostNL’s actions.

PostNL has filed an objection against this decision. ACM is currently processing this objection. In the meantime, however, PostNL still needs to meet all statutory obligations, and will thus have to make an offer to Van Straaten Post after all, and it will have to inform other postal companies of its tariffs and conditions.