A European Union court has rejected complaints from international courier companies claiming that French state-owned postal services company La Poste unfairly subsidises its own courier express operation.
The ruling is part of a larger struggle by EU antitrust authorities and private companies trying to pry open Europe’s monopoly-controlled postal markets while still respecting EU rules that allow for government funding of national postal companies – like La Poste – who serve unprofi table areas.
The La Poste case dates back to 1990, when the Union Francaise de L’Express or Ufex, Deutsche Post AG’s, DHL International, FedEx Corp’s Federal Express International France SNC and Service CRIE all complained to EU competition authorities that La Poste unit Societe Francaise de Messagerie Internationale – now Chronopost – was receiving unfair competitive advantages through its state-funded parent.
These alleged advantages include receiving logistical and commercial assistance on “unusually favorable terms.” The European Commission rejected this complaint, saying that since the matter concerned competition on the French market, it wasn’t an EU matter.
Europe’s second-highest court, the Court of First Instance, upheld that ruling last month.