Post 2025 Sector Report
In its sector report on the postal sector, the Monopolies Commission has warned against granting Deutsche Post a VAT exemption. Such an exemption is currently under discussion within the Federal Government. It would give Deutsche Post a massive competitive advantage with key customer groups that are not entitled to deduct input VAT. These include public authorities, banks and insurers. These customer groups account for around 60 per cent of the letters carried by competitors. The Monopoly Commission recommends that VAT should apply to all business letters – regardless of whether they are sent via Deutsche Post or competitors.
An exclusive VAT exemption for Deutsche Post’s business correspondence would probably spell the end for most of its competitors.
Episode 18: Post 2025 – Shaping the market begins!
Tomaso Duso and Elif Senel discuss the findings of the ‘Post 2025’ sector review on our Cast4Competition podcast.