Brussels, 04/10/2000 (Agence Europe) - The European Commission has extended the scope of the formal proceedings that it had opened on 8 August (letter of objections, see EUROPE of 9 August, p.1) against German postal operator, Deutsche Post. The Commission noted several anomalies after the examination of the contracts concluded by Deutsche Post with its main clients from the mail purchase sector. It discovered that, since 1974, the German operator had been concluding contracts granting reductions to its clients on condition that the latter entrusted all parcel despatches to Deutsche Post. In addition, from November 1997, Deutsche Post had concluded a new series of parcel delivery contracts which provided for a discount system, linked not only to customer loyalty but also to an annual minimum volume. These elements confirmed the Commission's suspicion that the main mail order customers were obtaining better rates of discount only if they sent all their parcels via Deutsche Post and if they sent a minimum volume. Systems whereby customers are forced to obtain supplies or services fully or in part from a dominant supplier, as is the case in this affair, is abuse of dominant position under Article 82 of the Treaty as the aim, by granting financial advantages, is to prevent clients from using competitive suppliers. In addition, a system geared to annual volumes strongly encourages the client to use a single provider since he/she might lose out on the discount by not reaching the minimum volume at the end of the year. Refunds linked to annual objectives are, moreover, contrary to Article 82 of the Treaty as they deprive the ability of clients to choose their supplier freely at any time and change suppliers without suffering notable economic losses.
To enable Deutsche Post to exercise its right of defence, the Commission has sent it an additional statement of objection. The Commission will then decide, on receipt of the answer from the operator, whether or not to prohibit the disputed conduct and, possibly, inflict fines on the company for infringing Community rules of competition, the amount of these fines depending on the seriousness and duration of the infringement.