Deutsche Post regains 1 billion euros after court overturns EC decision
Deutsche Post World Net will receive a repayment of about 1 billion euros after the European Court today overturned a 2002 decision by the European Commission relating to purported state aid payments.
In June 2002, the EC determined that the German conglomerate from 1994 to 1998 covered a cost deficit in the competitive business parcel segment through improper cross-subsidization with state aid funds earmarked for the financing of the universal service. As a result of the EC’s decision, Deutsche Post had to repay 572 million euros that was determined to be state aid plus 335 million euros in interest to the Federal Republic of Germany at the beginning of 2003. In September 2002, Deutsche Post brought an action for annulment of the Commission's state-aid decision before the European Court of the First Instance in Luxembourg.
Deutsche Post said the court’s decision to overturn the ruling confirmed its legal position.
“The company expects to receive the cash inflow in several weeks' time and would prefer to earmark the amount for returning to shareholders, pending clarity regarding other cash-relevant issues,” Deutsche Post said.