Austrian Post Fined €9.2 Million for Market Abuse

The Austrian Cartel Court has imposed a €9.2 million fine on Österreichische Post Aktiengesellschaft (Austrian Post) for abusing its dominant market position in the delivery of personally addressed mass-printed materials, known as “Info.Mail.” The Federal Competition Authority (BWB) filed the application for the penalty, which is now legally binding.

The BWB’s investigation found that the Austrian Post held a 90% market share in the Info.Mail sector, where it imposed restrictive discount terms on consolidators, limiting their cost-saving options compared to other large customers. The Info.Mail service is used for direct marketing, involving high volumes of identically formatted and weighted advertising mail. The court ruled that Austrian Post’s practices, which included imposing confidentiality clauses around discount rates, aimed to limit competition by disadvantaging consolidators, which help optimise shipping costs for various clients.

The decision followed an initial complaint in 2019, when companies filed for an end to Austrian Post’s discriminatory discount practices. Austrian Post contested, but the Supreme Court upheld the lower court’s ruling. After further investigation, the BWB filed for a fine, citing the need for general preventive measures.

Acknowledging its actions, Austrian Post cooperated with the BWB, which requested a reduced fine as a result. The BWB emphasized that dominant companies must avoid discriminatory practices that harm market competition.

Source: https://www.bwb.gv.at/news/detail/kartellgericht-verhaengte-geldbusse-ihv-eur-92-mio-gegen-die-oesterreichische-post-aktiengesellschaft-wegen-marktmachtmissbrauches

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