DHL 2005 Annual Report Download - page 77

In a ruling on October 20, 2004 relating to downstream access to Deutsche Post’s network
by mail consolidators, the European Commission found against the Federal Republic of
Germany, ruling that the relevant provisions of the Postgesetz are not consistent with EU
law. e Federal Republic of Germany was obliged to inform the European Commission
within two months of the measures it had taken to satisfy EU law. In December 2004, it
appealed against the European Commission’s ruling.
By way of a ruling dated February 11, 2005 in corresponding proceedings, the Bundeskar-
tellamt prohibited Deutsche Post AG from refusing downstream access by mail consolida-
tors to its network. In our view, the Postgesetz and the scope of the exclusive license comply
with Community and competition law, notably with the EU Postal Services Directive and
the competition rules of the EC Treaty. For this reason, we led an appeal against the rul-
ings by the European Commission and the Bundeskartellamt. Until a decision is reached
in these proceedings, we are obliged to allow consolidators downstream access. e condi-
tions of access are, in turn, the subject of regulatory authority decisions, as well as of ap-
peals against these decisions and civil cases. If the rulings by the European Commission,
the Bundeskartellamt or the regulation authorities result in an obligation to grant mail
consolidators downstream access to our network, this could lead to double to three-digit
million revenue losses per year.
An allegation by the Monopolkommission (German Monopoly Commission) is the subject
of requests for information made by the European Commission to the German federal
government in response to a complaint by a third party. e allegation is that Deutsche
Post AG contravenes the prohibition on state aid enshrined in the EU Treaty by allowing
Deutsche Postbank AG to use Deutsche Post outlets at below-market rates. In our opin-
ion, the fee paid by Postbank complies with the provisions on competition and state aid
stipulated in European law.
e European Commission is also asking the Federal Republic of Germany to comment
on the sale of its entire interest in Deutsche Postbank AG to Deutsche Post AG in 1999.
However, the European Commission has already investigated the acquisition of Postbank
as part of the state aid proceedings that were concluded with the ruling dated June 19,
2002. At the time, it explicitly concluded that “the acquisition of Postbank involved no
grant of state aid”.
e German federal government has already argued before the European Commission
that the allegations are unfounded in its opinion. Nevertheless, no assurance can be given
with regard to the two allegations relating to the requests for information that the Euro-
pean Commission will not nd that the facts of the case constitute state aid.
Deutsche Post World Net
73
Risk Management
Group Management ReportConsolidated Financial StatementsAdditional Information