Reform proposal threatens the existence of postal competitors: financial expert warns against the formation of monopolies

Reform proposal threatens the existence of postal competitors: financial expert warns against the formation of monopolies

According to a report by www.zeit.de, smaller competitors of the postal service in the mail business fear for their existence due to a reform proposal to the postal law. The postal service is to be exempt from sales tax, which would make sending letters cheaper for corporate customers. However, the small companies, which include Citipost, PostModern and Pin AG, would still have to charge sales tax. This unequal tax treatment is seen by competitors as an unfair competitive advantage for the postal service, which endangers the existence of smaller companies. The tax relief mainly affects corporate mail, which forms a large part of competitors' activities, particularly in the financial services, government and non-profit sectors.

According to the report currently from the German Press Agency in Berlin, it is feared that the tax subsidy could have a major impact on competition. This could strengthen the post office and make it a monopolist again. The market share of Postal's competitors is currently around 14 percent, and last year they generated sales of 1.1 billion euros in the mail business.

The tax subsidy for the post office could lead to a massive competitive disadvantage for its competitors. This could lead to a market shift in favor of the postal service and to severe economic losses for smaller companies. The planned reform of the postal law is expected to be completed in spring 2024, which would mean that competitors could soon face the effects of the tax break.

This unequal treatment and the threatened economic impact on competitors could lead to far-reaching changes and uncertainty in the financial industry. There is a possibility that competitors will have to revise their strategies and business models in order to remain competitive with Post and secure their existence. The supposed preferential treatment of the post office could lead to a massive market imbalance and fundamentally change the financial industry.