Brussels, 3 February 2025
The European Commission has approved, under EU State aid rules, a Czech measure to compensate postal operator Czech Post for the provision of a universal service obligation for the period between 2023 and 2024. The public service obligation entrusted to Czech Post includes the universal postal service obligation, as well as the provision of Postal Money Orders, whereby cash money can be safely delivered.
Under the measure, Czech Post will receive annual compensation of up to €59 million to cover the costs incurred in fulfilling the public service obligation.
The Commission assessed the Czech measure under EU State aid rules, in particular Article 106(2) of the Treaty on the Functioning of the EU, the Postal Services Directive and the rules on public service compensation, under the Services of General Economic Interest (‘SGEI’) Framework. The Commission found that the scope of the universal service obligation is in line with the definition set out in the Postal Services Directive, and that the Postal Money Order service constitutes an SGEI and meets the entrustment criteria of the SGEI Framework. The Commission also found that the compensation will not exceed the net cost of the public service, ensuring that Czech Post will not be overcompensated. On this basis, the Commission approved the Czech measure under EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.104103 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.