PRESS RELEASE: The European Commission investigates recovery of net costs to Czech Post

Prague, 23 June 2020 – The European Commission initiated a formal investigation according to Article 108 TFEU. An expected step followed the announced intention of the Czech Republic to provide the Czech Post a recovery of net costs for provision of universal postal services between 2018 and 2022.

The Commission’s approach is a reaction to the notification submitted by CTU via the Office for Protection of Competition at the end of January.

The Commission will thoroughly assess all circumstances of the announced measure. During the proceeding, the Commission has enough space for communication with the Member State in set deadlines so it can acquire all necessary information and issue a decision in an expected period of 18 months after initiating the proceeding.

The proceeding is a standard tool used generally for complex and difficult cases, which are usually accompanied by complaints from other stakeholders. This process should mainly eliminate any doubts that could occur in relation to the notified measure and its compliance with the internal market. The initiation of a formal investigation is also in line with the current trend in the Commission’s procedures. The Commission is encouraged to use such approach by the current decision-making practice of the Court of Justice of the EU.

No conclusions demonstrating the compliance of the aid with the European law can be anticipated solely on the basis of the formal investigation.

CTU will continue to provide maximum cooperation to the Commission’s bodies during the formal investigation.

Press Unit
Czech Telecommunication Office