Germany’s postal regulator has rejected Deutsche Post’s application for an increase in letter-postage prices, stating that the company failed to provide sufficient evidence of rising costs. The Federal Network Agency, responsible for regulating the country’s postal market, argued that Deutsche Post did not adequately demonstrate that a decrease in letter volumes led to higher costs per item. While the company claimed cost increases due to inflation and wage agreements, the regulator stated that cost reductions were also present in Deustche Post’s submitted figures.
According to Deutsche Post Chief Executive Tobias Meyer, this decision means that the company will miss out on a significant profit in the three-digit million euros. As a result, the German post-and-parcel division of the group will explore options for scaling down investments and implementing further cost-cutting measures. Meyer also mentioned that a potential lawsuit cannot be ruled out.
Deutsche Post had initially submitted an application in May to increase postage charges earlier than scheduled. However, this request was subject to a framework established at the beginning of 2022 and lasting until the end of 2024, as noted by the agency.
“While we acknowledge the challenges faced by the letters and parcels business, the data provided indicates that the current letter prices adequately cover the costs per item. The regulated letters sector continues to generate profits,” stated Federal Network Agency President Klaus Mueller.
Ulrike Dauer contributed to this story.