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German Federal Cartel Office Launches Investigation Against Deutsche Post Subsidiary

 |  July 20, 2023

The German Federal Cartel Office has recently launched an investigation against the Deutsche Post subsidiary, Inhaus Services, as well as two other companies for potentially engaging in anti-competitive practices. This investigation particularly focuses on the company’s role in mail consolidation services.

Bundeskartellamt President Andreas Mundt released a statement claiming the Office will be examining whether Deutsche Post Inhaus Services have agreements in place with competitors concerning mail consolidation services, which would restrict competition. Mail consolidation refers to a service used to efficiently process multiple parcels and letters from customers, thereby reducing costs by streamlining the process.

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In response, a spokesperson for Deutsche Post has said its subsidiary has submitted all existing contracts with competitors to the federal network agency for scrutiny. The spokesperson also noted that the company is sure the agreements comply with competition law and will thus back their claims with evidence.

“We will examine whether the existing agreements Deutsche Post InHaus Service has in place with its direct competitors restrict competition,” said President Mundt.

“We are convinced that these agreements are also in line with competition law and will also present this to the federal cartel office,” the Deutsche Post spokesperson stated.

The outcome of the investigation should be made available in the coming months as the application of the Competition law is closely monitored in Germany. In the meantime, it is expected that the companies under Federal Cartel Office scrutiny will cooperate fully with the investigation for a successful outcome.

Source: Reuters