Spain: CNMC to probe Correos over predatory pricing

Spain’s National Commission for Markets and Competition (CNMC) has launched a probe against the Spanish Post Company Correos, accusing the public company of applying massive discounts to its large customers which place their prices “well below their costs” of operation.

This is indicated by the authority in a resolution issued after reviewing the prices published by Correos for the year 2019, seeking to ensure that they are “affordable, transparent and non-discriminatory … taking into account the real costs of the service.”

By offering prices well below operating costs, the CNMC claims, “Correos does not comply with the obligation to guide prices to the costs it incurrs…,” noting also that the company has been questioned about these practices from as far back as 2014.

As a result, the CNMC “will investigate the possible breach… of the universal postal service regulations.” However, the agency has supported the system and contract by which Correos opens its distribution network to other operators, which satisfies compliance with the principles of transparency and non-discrimination … ”

Full Content: El Español

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.