The Regulatory Framework for Postal Markets in Germany

Abstract

The new Postal Act that came into force on January 1, 1998, has created a regulatory framework for a liberalized postal market in Germany. Regulation of the postal sector is designed to encourage competition and to guarantee appropriate and adequate services throughout the country. It marks a paradigm shift since now competition is the rule and monopoly is the exception. The conveyance of letter post items up to 1000 grams is subject to a licensing regime. As a transitional provision Deutsche Post AG has been granted a statutory fixed term exclusive license until December 31, 2002 to deal with structural change. The exclusive license applies to the conveyance of letter post items and addressed catalogues weighing up to 200 g each and costing no more than five times the rate applicable at 1997-prices. For direct mail (called ‘letters with identical content’ in Germany) the weight limit is 50 g only and a minimum of 50 items has to be posted (See Figure 1.1). The exclusive license does not apply to letters from 200 to 1000 g. Furthermore, the exclusive license does not apply to services distinct from universal services as defined in the respective ordinance (see below) having special features and higher quality’¹.

The Regulator has settled on the following criteria for the definition of these services: Collecting letter post items from the customer at fixed times or on request; delivery of the letter post items to the addressee on the day of collection and/or when they are collected after 17:00 hours by 12:00 hours at the latest on the following day and/or as agreed (on a day agreed by the customer on a case by case basis); subsequent accounting at fixed periods; revised arrangements between the times of collection and delivery contractually agreed non-payment of fees in the event of late delivery; provision of service in a major part of the territory of the Federal Republic of Germany.