EU regulator backs gov't support for Royal Mail

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EU regulator backs gov't support for Royal Mail

1 hour ago

BRUSSELS (AFP) — The European Commission ruled on Wednesday that a series of measures taken by the government in favour of postal operator Royal Mail did not breach EU state aid legistlation.

"The commission concluded that three out of the four measures did not contain state aid because they were granted under market conditions," said a statement from the European Union's top competition regulator.

A fourth measure on Royal Mail pensions was approved under state aid rules "because it covered abnormal costs which had arisen from the previous period when Royal Mail had a monopoly over the letters market," it said.

None of the steps had been notified to the commission but Brussels opened an inquiry in 2007 following complaints. The decision does not cover other measures announced by the government last December in favour of the postal operator.

"After complaints from competitors of Royal Mail, we started a long and complex investigation. I am glad that we have been able to resolve the issues," EU Competition Commissioner Neelie Kroes said.

"We now look forward to a timely notification of new measures in favour of Royal Mail that were announced in December and will require a detailed examination in close collaboration with the UK authorities," she said.

Royal Mail's 350-year-long monopoly of the letter-delivery business ended in January 2006, as new rules kicked in to allow rival operators to win a slice of the market, but it still operates most British postal services.

Copyright © 2009 AFP. All rights reserved

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Poor old TNT, nothing is working out for them lately