Brussels, 23 July 2024
The European Commission has approved, under EU State aid rules, Denmark’s compensation to postal operator Post Danmark for its universal postal service obligation during the period 2021-2023.
Under the measure, Post Danmark will receive a compensation for a maximum of around €63 million (DKK 467 million) for discharging its universal postal service obligation for the period 1 January 2021 – 31 December 2023. This includes the provision of basic postal services throughout Denmark at affordable prices and at certain minimum quality requirements.
The Commission assessed the measure under EU State aid rules, in particular Article 107(1) and Article 106(2) of the Treaty on the Functioning of the EU, as well as the rules on public service compensation, under the Service of General Economic Interest (‘SGEI’) Framework and the Postal Services Directive. The Commission concluded that the compensation complies with the provisions of the SGEI Framework. More specifically, the Commission found that the measure constitutes a genuine SGEI and meets the entrustment criteria of the SGEI Framework. In addition, the Commission found that the measure’s duration is justified for the delivery of the SGEI, and it complies with the requirements on transparency, and separation of accounts. Finally, the compensation granted does not exceed the net cost of discharging the SGEI, ensuring that Post Danmark will not be overcompensated.
On this basis, the Commission approved the Danish measure under EU State aid rules.
The non-confidential version of the decision will be made available under case number SA.111272 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.