Commission opens in-depth investigation into the financing of #CzechPost universal service obligation

The European Commission has opened an in-depth investigation to assess whether the compensation granted by Czechia to Czech Post to fulfil its public service mission is in line with EU state aid rules. Czech Post is the main postal operator in Czechia and is wholly owned by the State. In January 2020, Czechia notified the Commission of its plan to compensate Czech Post for a maximum amount of CZK 7.5 billion (approximately €282.1 million) for carrying out its universal postal service obligation during the 2018-2022 period.

In November 2019, the Commission received two complaints from competitors of Czech Post alleging that the compensation to be granted to Czech Post for its universal service obligation for the period 2018-2022 constitutes incompatible state aid. Following a preliminary assessment, the Commission has decided to open an in-depth investigation, in particular as it has concerns regarding the correct calculation of the net avoided cost of the universal service obligation. As a result, the Commission was not able to exclude the risk of overcompensation. The Commission will now investigate further to determine whether its initial concerns are confirmed. The opening of an in-depth investigation gives Czechia, the complainants and other interested third parties an opportunity to submit comments. It does not prejudge the outcome of the investigation. The full press release is available online.

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