The German Federal Ministry of Finance (BMF) is poised to significantly restrict competition within the postal services sector, introducing stringent new conditions for private companies vying for market share against the partially state-owned Deutsche Post. According to reports from “Der Spiegel”, citing the Ministry and the Federal Central Tax Office, the proposed changes aim to limit the VAT exemption currently afforded to private postal operators.
Under the planned overhaul, simply offering nationwide service will no longer suffice to qualify for the tax advantage. Private companies will now be assessed based on performance metrics including delivery times, the quantity of postal collection points and the frequency of their emptying. Critically, adherence to fair employee compensation practices will also be factored into the evaluation process. The Federal Central Tax Office has indicated it intends to revoke existing VAT exemption approvals for competing companies, forcing them to reapply under the revised framework.
This move has sparked accusations of undue influence by Deutsche Post. Walther Otremba, chair of the Federal Association of Postal Services (a consortium of private competitors), alleges a blatant collusion between the Ministry of Finance and the state-controlled postal giant. He posits that the new regulations are being implemented to artificially inflate the perceived value and attractiveness of Deutsche Post’s mail and parcel division, which is slated for a planned stock market listing.
Critics suggest the stringent requirements are designed as a barrier to entry, effectively protecting Deutsche Post’s dominant position. The change raises concerns about the government’s commitment to fostering a genuinely competitive marketplace and suggests a potentially preferential treatment of a partially state-owned entity at the expense of smaller, private businesses challenging the established order. The debate underscores the delicate balance between promoting competition and safeguarding the strategic interests of a nationally significant enterprise, particularly as the latter prepares for a potentially lucrative IPO. Questions are now being raised regarding the transparency of the decision-making process and the potential for anti-competitive behavior being facilitated by governmental action.
