The Italian Competition Authority, at its meeting on 3 August 2007, decided to open an investigation into possible abuse of a dominant position by Poste Italiane in liberalized services and in those soon to be liberalized.

In the Authority's view, the sub-contracting agreements stipulated in the period December 2000-January 2007 with competitors previously operating postal services under concession, together with the nature of the request for proposals issued in May 2007, could be evidence of a concerted strategy on the part of POSTE to reinforce and extend its dominant position in already liberalized services and in those that are to be liberalized in the near future.

The Authority emphasizes that Legislative Decree no. 261 of 1999, implementing an EU directive on the progressive liberalization of postal services, paradoxically caused the removal from the market of a number of ordinary and registered mail services previously offered not only by POSTE but by a multiplicity of companies operating under concession in their specific areas (in particular in urban centres which are the most profitable market segment).

After the decree came into force, Poste signed contracts with about 70 former concession-holders for the outsourcing of a series of legally reserved services. Nevertheless, thanks to POSTE's far greater contractual power, these contracts seem to be strongly skewed in its favour and such as to constrain the overall activities of the former concession-holders, greatly reducing their ability to compete even in postal businesses that are not subject to reserve.

In the Authority's view, many of the clauses contained in the contracts are in reality intended to reduce the business autonomy of the former concession-holders, weakening them in view of the complete liberalization planned for 2011 at the latest.

Moreover, at the end of May 2007, POSTE issued a request for proposals to replace the old contracts which incorporates reserved services and activities that are not part of the universal service and that therefore are open to free competition, accompanied by exclusivity clauses that prevent delivery agencies from offering their services to businesses competing with the dominant operator.

Overall, POSTE's conduct may severely limit the activities of the former concession-holders and thus alter current and  potential competitive conditions in the market for postal services.

The investigation must be completed by 30 May 2008.