DHL 2014 Annual Report Download - page 97

On the other hand, although Deutsche Post  and the federal government are of
the opinion that the state aid decision cannot withstand legal review, it cannot be ruled
out that Deutsche Post  will ultimately be required to make a potentially higher pay-
ment, which could have an adverse eect on earnings. More information about the state
aid investigation is provided in the Notes.
On  November , the Bundesnetzagentur determined the conditions for
regulating certain mail prices requiring approval under the price-cap procedure
from January  to December . e general rate of ination less the produc-
tivity growth rate stipulated by the regulatory authority (-factor) in the amount of
. p. a. constitutes the key factor applicable to the price trend for these products. is
would necessitate price reductions if the ination rate in the reference period is lower
than the productivity growth rate specied and permit price increases if the ination
rate in the reference period is higher than the productivity growth rate specied. On
 October , the Bundesnetzagentur approved a .  increase in the average price
of all price-capped products.
On  June , the Bundesnetzagentur initiated market abuse proceedings against
Deutsche Post InHaus Services GmbH, citing discriminatory access conditions for
sorting and consolidation services following a complaint by one of the company’s
competitors. e party ling the complaint accused the company in particular of oer-
ing other postal services providers better conditions for posting and collection than it
itself had been oered. Deutsche Post InHaus Services GmbH considers the accusations
to be unfounded. On  November , the Bundesnetzagentur suspended the market
abuse proceedings. It is currently unknown whether the complainant will appeal the
suspension of the proceedings.
Since  July , as a result of the revision of the relevant tax exemption provisions,
the  exemption has only applied to those specic universal services in Germany
that are not subject to individually negotiated agreements or provided on special terms
(discounts etc.). Deutsche Post  does not believe that the legislative amendment fully
complies with the applicable provisions of European Community law. Due to the legal
uncertainty resulting from the new legislation, Deutsche Post  is endeavouring to
clarify certain key issues with the tax authorities. Although Deutsche Post  is imple-
menting the required measures to a large extent, the diering legal opinions on the part
of Deutsche Post  and the tax authorities will be judicially claried.
In light of the announced legal proceedings, we have not undertaken a risk
classication.
In addition to the opportunities and risks arising from sector-specic regulation
pursuant to the Postgesetz (PostG – German Postal Act) , the company is subject to additional
opportunities and risks arising from legal conditions.
On  November , the Bundeskartellamt (German federal cartel oce) initi-
ated proceedings against Deutsche Post based on suspicion of abusive behaviour with
respect to agreements on mail transport with major customers. Based upon information
from Deutsche Post ’s competitors and customer surveys, the authorities suspect
that the company had violated the provisions of German and European antitrust law.
Deutsche Post  does not share this opinion. However, should the authorities nd
their suspicions conrmed, they may require Deutsche Post  to refrain from certain
practices or impose nes. Due to the on-going legal proceedings, we are not providing
a risk assessment at present.
Note 
Glossary, page 
Deutsche Post  Group —  Annual Report
91
Group Management Report — OPPORTUNITIES AND RISKS — Categories of opportunities and risks