POSTAL SERVICES: INVESTIGATION CONCLUDED FOLLOWING ACCEPTANCE OF COMMITMENTS
PRESS RELEASE
PRESS RELEASE
POSTE ITALIANE: ANTITRUST AUTHORITY ACCEPTS COMMITMENTS REGARDING FORMER CONCESSION-HOLDERS. INCREASE IN QUANTITY AND TYPE OF SERVICES PUT OUT TO TENDER. CONTRACTS EXTENDED UNTIL MARCH 2008. PARTICULARLY BURDENSOME CLAUSES ELIMINATED.
The Italian Competition Authority, at its meeting on 27 February, decided to accept and render binding the commitments proposed by Poste Italiane within the investigation, begun on 3 August 2007, into possible abuse of its dominant position in the markets for liberalized and soon-to-be liberalized services.
In the Antitrust Authority’s view, these commitments will remove the anti-competitive stance which motivated the investigation and which was the subject of complaints by representatives of delivery agencies: this had to do with Poste Italiane’s sub-contracting arrangements with companies operating under concession.
In the Authority’s view, the 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 Italiane to reinforce and extend its dominant position in already liberalized services and in those that are to be liberalized in the near future.
The above commitments mean the productive capacity of delivery firms will be maintained and this, in the light of the Memorandum signed on 11 December 2007 by the Ministry of Communications, Poste Italiane and the delivery agencies, will allow for the creation of real competition from present and potential operators of postal services once the market has been completely liberalized.
The definitive commitments presented by Poste Italiane, as strengthened following the results of a market test, are as follows:
a) The issuing of a new request for proposals for the collection and distribution of correspondence and unaddressed mail and the carrying out of auxiliary services in urban areas, in 70 parcels (42 parcels not let in the June 2007 tender and 28 new parcels). The overall value of the activities in question, 168 million euros over three years, together with the assurance of a total minimum guarantee of 80% of the value over three years of the assigned parcel, substantially reaffirm the amounts contracted out to the former concession-holders in previous years, thus supporting the maintenance of the delivery agencies’ productive capacity until the planned complete liberalization of the postal markets takes place on 1 January 2011 at the latest;
b) extension of the contracts stipulated with the delivery agencies to cover the whole of the first quarter 2008, by which time the new tendering procedure should be in place. In this way, the former concession-holders are able to carry on their businesses until the tender process is complete and the new contracts are assigned;
c) a guarantee that no less than 40% of registered mail on average will be outsourced, with a minimum of 25% for each individual business. This commitment represents a compromise between Poste Italiane’s need to take certain activities back in house and the need to reduce the burden on the delivery agencies of any restructuring of their distribution services;
d) elimination of the clause providing for Poste Italiane’s approval and of the contractual clauses prohibiting companies from competing with Poste Italiane. This should encourage the growth and aggregation of local businesses and allow delivery agencies to strengthen their market position so that they will potentially be able to offer liberalized postal services in competition with the dominant operator.
Rome, 28 February 2008