Monday, August 22, 2016

Competition Authority accuses CTT to fend off rivals illegally – publico


 
         
                 

                         
                     

                 

 
 

The Competition Authority accused the CTT of dominant position abuse and says the company is not complying with the law that requires it to make available to rival companies access to its network of traditional mail distribution, and ultimately not face any competition in this market.

“the investigation of the competition Authority showed that CTT used control over the single network of traditional mail delivery with national coverage in Portugal to prevent the entry or expansion of competitors national market for the provision of traditional mail services, “said a statement from the regulator. According to the note, the traditional mail services (which include, for example, the letters) are “a market estimated at at least EUR 400 million per year.”

Asked by PUBLIC, the Competition Authority did not specify which companies were prevented access to the postal network. “All companies that compete with CTT since the liberalization of the postal market saw access to forbidden network. As a result of the access refusal to practice, CTT do not face effective competition in the market, “said the governor. PUBLIC tried unsuccessfully to contact the CTT. At Lusa, the company said that “part of corporate life be subject to supervisory action by the regulators” and stressed that it will “naturally respond and provide all necessary clarification.”

Since 2012, when the law came into force liberalizing this market, the postal service operators can distribute traditional mail and CTT forced to sell access to the distribution network, which includes the means of sorting and forwarding of correspondence. The Post Office website states that the company offers “to licensed postal operators a range of services covering the operations of acceptance, transport, processing and distribution of postal items deposited in your network.”

These services include “destination with matches in the national territory, not a priority and a maximum weight of two kilos” and also “matches to destinations outside the national territory, not a priority and maximum weight of two kilograms. ” At the time of publication of that law, which transposes a European directive, CTT were still a public company. a fully private company became in 2014.

“The competing postal operators need access to a postal distribution network with national coverage in order to provide traditional mail services to customers business, “argues the Competition Authority, adding not be economically viable for other companies to develop their own national network.

There were last year 88 companies authorized to provide postal services, including several companies specializing in transportation orders, second Authority figures national Communications . The CTT group accounted for 95% of all traffic. The delivery of correspondence value in 2015 about 448 million euros, about the same as in 2014.

The so-called “statement of objections” sent this month by the Competition Authority does not mean that process is complete. The Post Office now have the opportunity to be heard and to present a defense. The regulator says that “if confirmed,” the behavior of CTT “has a high probability of producing significant damage by creating barriers to the development of effective competition, in particular by national companies looking to send mail business customers, as well helping to reduce the possibilities of choice, raise prices, reduce quality and hinder innovation. “

by 2020, CTT has exclusive of some postal services, such as placement . milestones and mailboxes on the street, the registered mail to judicial and administrative proceedings and issuing money orders

updated News: added the reaction of CTT.

                     
 
 
                 


             

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