Competition body to look into postal delivery price war

[TrueBlueTerrier]

http://www.dutchnews.nl/news/archives/2 ... k_into.php" onclick="window.open(this.href);return false;

Ministers have asked the competition authority NMa to look into possible anti-competitive practices by budget mail delivery firms such as SelektMail and Sandd, the Financieele Dagblad reports on Thursday.

The investigation follows concerns that the new players are working below cost price in order to boost their market share.

But an impressive file of evidence will have to be collected to prove the case, junior economic affairs minister Henk Bleker told MPs.

Incomes

A majority of MPs believe the liberalisation of the postal delivery market has hit delivery workers’ incomes and working conditions. The budget companies pay their staff for each item delivered and have so far resisted pressure to formally employ them.

But, when unions, employers and ministers worked out details of the liberalisation process, the new companies promised to employ increasing numbers of staff. They are now embroiled in legal action to break this condition.

The government has already appointed a mediator to try and break the deadlock by January 1.