EC CHARGES DEUTSCHE POST

EC CHARGES DEUTSCHE POST    The European Commission has charged Deutsche Post AG with illegally abusing its dominant position in Germany’s parcel delivery market to hamper competition.
   The EU formally notified Deutsche Post by letter that it will investigate the post office for a third time, even as the company prepares for an initial public stock offering in November.
   The launch of a new probe almost insures that the EC will not complete its investigations of Deutsche Post before the company’s scheduled IPO in Frankfurt. The German post has said EC activities will not affect its plans.
   The EC claims it has evidence that Deutsche Post gave parcel customers in Germany discounts to move all of its packages with the post office. The EC alleges that Deutsche Post was offering parcel delivery at below cost prices with the discounts.
   The investigation could result in significant fines. It comes on top of two other investigations into Deutsche Post activities already under way. The EC is examining allegations that Deutsche Post sought to restrict international mail competition and that it received illegal state subsidies from the German government.