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The Deutsche Post welcomes the new Postal Act but is already securing itself to justify any potential price increases. Specifically, the Deutsche Post criticizes the proposed new instruments for artificially stimulating competition in the shrinking letter market, such as the fee consistency requirement, the clawback of excess revenues for violations of the complex fee regulation provisions, or network access for goods shipments and press mail. Even though the letter market is shrinking, competition cannot hurt.
(Bonn/Berlin) The Deutsche Post welcomes the fact that the Bundesrat today passed the “Law for the Modernization of Postal Law,” and the framework conditions for future postal services are now established. After the German Bundestag had already approved it, the law is expected to come into force as early as July. It replaces both the Postal Act and the Postal Universal Service Ordinance from 1998 and establishes a new legal basis for the nationwide provision of letters and packages in Germany (also known as postal universal service). The long-overdue modernization of the law enables the Deutsche Post to continue providing the postal universal service even in times of structural change – a significant decline in letters and an increase in packages.
Specifically, the Deutsche Post also criticizes the proposed new instruments for artificially stimulating competition in the shrinking letter market, such as the fee consistency requirement, the clawback of excess revenues for violations of the complex fee regulation provisions, or network access for goods shipments and press mail. Germany continues to pursue a special path in promoting competition in the letter sector, which has already failed in other EU countries. Comparable measures in other countries have led to higher prices and poorer quality. The enormous bureaucratic burden that the new Postal Act brings with it, such as the introduction of new reporting obligations and the expansion of regulation in the package sector, is equally incomprehensible.
Changes to letter products
The new Postal Act stipulates that letters may take longer to be delivered starting in 2025. 95 percent of letter shipments must arrive three days after posting instead of the previous two days. Currently, it is planned to give letter customers a choice regarding delivery times starting in 2025.
Changes in the package sector
According to the new Postal Act, packages weighing over 10 kg and over 20 kg must be marked with a clearly visible and easily understandable notice about the increased weight.
Impact on the branch network
The new Postal Act maintains the requirement that there must continue to be 12,000 post offices across Germany. It also provides for the possibility of automated stations instead of universal service branches. The Deutsche Post welcomes this modernization, as the machines are very popular due to their mostly continuous accessibility, and it is becoming increasingly difficult to find suitable retail spaces or retailers to operate branches in some areas. The Deutsche Post will also ensure in the future that every municipality is adequately and compliant with postal services.
Photo: © Deutsche Post DHL
