The European Commission opened on Tuesday 23 June an in-depth investigation to determine whether the compensation granted by the Czech Republic to the Czech Post for the fulfilment of its public service mission is in line with EU State Aid rules.
‘Czech Post’ is the main postal operator in the country and is wholly owned by the State.
In January 2020, the Czech Republic notified the Commission of its plan to compensate up to 282.1 million euros for the fulfilment of its universal postal service obligation in the period 2018-2022. The plan provides for the provision of basic postal services throughout the country at affordable prices and according to certain minimum quality requirements.
Under EU State Aid rules on public service compensation, adopted in 2011, Member States may, subject to certain criteria, grant State Aid to companies to compensate for the extra cost of providing a public service. The companies in question must not be overcompensated which minimises distortions of competition and guarantees an efficient use of public resources.
In November 2019, the Commission received two complaints from competitors of ‘Czech Post’ alleging that the compensation over the period 2018-2022 constitutes incompatible State Aid.
At this stage, the Commission is concerned that ‘Czech Post’ may have been overcompensated between 2018 and 2022 for providing the universal postal service.
The Commission has therefore opened an in-depth investigation, in particular because of its concerns about the correct calculation of the net avoided cost of the universal service obligation. The Commission has therefore not been able to exclude the risk of overcompensation. The opening of an in-depth investigation gives the Czech Republic and the complainants an opportunity to submit comments. It does not prejudge the outcome of the investigation.
In February 2018, the Commission validated the 2013-2017 compensation for Czech Post. (Original version in French by Lionel Changeur)