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EU court rules that Germany breached law over Deutsche Post aid
May 6, 2015 / 8:26 AM / 2 years ago

EU court rules that Germany breached law over Deutsche Post aid

A Deutche Post sign adorns the Bonn Post Tower, the headquarters of German postal and logistics group Deutsche Post DHL in Bonn March 11, 2015. REUTERS/Wolfgang Rattay

BRUSSELS (Reuters) - The European Court of Justice ruled on Wednesday that Germany had breached EU law in providing state aid to Deutsche Post (DPWGn.DE) as it had not sufficiently taken into account the business-to-business parcel delivery market.

The European Commission in 2012 ordered Germany to recover from Deutsche Post incompatible aid granted since 2003 of between 500 million euros and 1 billion euro (370 million-0.74 billion pounds) from a combination of high regulated prices and pension relief subsidies.

In 2013, the Commission took Germany to court for failure to recover this aid, which it said had given Deutsche Post an unfair advantage over its competitors.

Reporting by Philip Blenkinsop

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