Negative price spiral on German mail market to end

16 November 2011 at 16:00 CET – 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.”

About PostNL
Annually PostNL processes 8.8 billion addressed postal items (including 100 million parcels) and delivers to more than 88 million addresses in the Benelux, Germany, the UK and Italy. PostNL’s main business is mail, parcels and e-commerce. The company also provides services in the area of data and document management, direct marketing and fulfilment. PostNL employs some 77,000 people. In 2010 the company generated a turnover of nearly 4.3 billion euros. More information about PostNL can be found on its website

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