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EU to Decide Deutsche Post Fine

June 14, 2002

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BRUSSELS, Belgium (AP) _ The European Union Commission plans to decide next Wednesday on a possible fine against Deutsche Post for using profits from its monopoly letter business to subsidize other activities, a Commission spokesman said Friday.

Commission spokesman Michael Tscherny wouldn’t say whether there would be a fine or how much it might be, however lawyers said the German company could face more than 800 million euros ($759 million) in penalties.

United Parcel Services and other parcel competitors have complained Deutsche Post offers package services at prices below service costs. The companies charge that Deutsche Post makes up the difference with funds from its monopoly letter business, Tscherny said.

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