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FDP mulls breaking up Deutsche Post to spur competition

The pro-business Free Democrats are considering breaking up Germany's national postal service Deutsche Post, according to classified parliamentary documents published on Thursday.

FDP mulls breaking up Deutsche Post to spur competition
Photo: DPA

The junior coalition partners to Chancellor Angela Merkel’s conservative Christian Democrats want to propose legislation carving up Deutsche Post under guidance of Economy Minister Rainer Brüderle, financial daily Handelsblatt reported.

The “basis for a proportional breakup of the Post is its enduring market control of postal delivery despite long-running regulation,” according to the document quoted by the paper.

Brüderle’s proposal would make it possible for the Federal Cartel Office, or Bundeskartellamt, to force market leaders to sell parts of their businesses, the paper reported. Such a law would likely apply to companies like Deutsche Post and large energy providers, though it remains unclear whether big banks would also be subject to the new competition standards, the paper reported.

The news comes at a time when Deutsche Post is under scrutiny by the federal government’s Monopolies Commission and competitors are accusing the company of abusing its position as market leader.

Members of Merkel’s conservatives have also been critical of Deutsche Post’s might, the paper said. Though some have said that ending favourable sales tax rates as a cabinet proposal suggested in December would be enough to even out the playing field for competitors, others believe this doesn’t go far enough.

“In my view this needs to be improved,” spokesperson for the Christian Democratic parliamentary group Joachim Pfeiffer told the paper, adding that the rules defining the difference between private and business customers was too porous.

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Can you rely on Sweden’s Postnord to deliver cards and presents on time?

Wednesday marks the last day you can send first class letters or parcels in Sweden and still hope they'll make it in time for Christmas Eve. But how reliable is PostNord, the company which runs Sweden's postal service?

Can you rely on Sweden's Postnord to deliver cards and presents on time?

What can you still send and hope for it to be delivered by Christmas? 

The Christmas deadline for letters and parcels outside of Sweden already passed on December 12th, as has the deadline for ordering anything online and hoping for it to arrive on time, with most e-commerce companies advising customers that anything ordered later than December 19th will not arrive in time. 

But if you’re sending first-class letters, pre-paid parcels, and small packages for delivery through the letterbox, you can still send them up until December 21st. The same goes for other parcel services such as Postnord MyPack Home, PostNord MyPack Home small, PostNord MyPack Collect, and Postpaket parcels.  

And if you’re willing to pay a bit extra, you can send express mail letters, express parcels, and first class ‘varubrev’ small parcels up until December 22nd. 

“Those dates still apply. We have written in a press statement that if you send by those dates you can be pretty sure that they will arrive in time,” Anders Porelius, head of press at PostNord, told The Local on Tuesday. 

But can you trust Postnord to deliver when they say they will? 

Not entirely.

The Swedish Post and Telecom Authority, Sweden’s postal regulator, ruled on December 8th that the company was failing to meet its regulatory target of delivering 95 percent of all letters within two working days, with 28 million letters delivered late between June and November. 

An investigative documentary by TV4’s Kalla Fakta (Cold Facts) programme, was sent pictures showing huge piles of late, undelivered letters in one of PostNord’s terminals, and interviewed postal workers who said that they were unable to complete their deliveries now they had been moved from daily to every other day, as they had twice as many letters to deliver on the days when they worked. 

“You get yelled at by the customers, and rightly so, you get yelled at by your bosses, and you scold yourself because you feel like you’re not able to do enough,” said Emilia Leijon, one postal worker. “We pretty much never manage to deliver a whole satchel. There’s too much post and too little time.” 

What is PostNord doing about the delays? 

The Swedish Post and Telecom Authority has given the company until January 30th to carry out an analysis into why it is not managing to meet its targets, and to draw up an action plan of how it is going to improve. 

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