State aid case SA.49469 | Compensation to La Poste for its territorial coverage

Further information:

The Commission's assessment showed that the scheduled compensation did not exceed the amount needed to cover the net cost of this public-service mission. On this basis, the Commission concluded that the measure is in line with EU rules on State aid.

Background information:

La Poste has been a publicly-owned French corporation since 23 March 2010 and is France's traditional postal operator with responsibility for the universal postal service and a number of additional public-service obligations, including territorial coverage.

La Poste's ‘territorial coverage' mission is designed to ensure high-density postal coverage, over and above the universal service obligation, particularly in rural areas. This coverage is provided through approximately 9 500 outlets, with post offices gradually being replaced by partnerships with local shops and town halls as contact points that are cheaper to run and should therefore help to gradually reduce costs.

To fund this mission, the contract for services between the French State and La Poste for the 2018-2022 period provides that La Poste receives local tax relief worth a maximum of around €900 million over the period as a whole.

The European Commission concluded on 6 April 2018 that tax relief granted to the French post office (La Poste) to maintain the high-density coverage of postal services in France over the 2018-2022 period is in line with EU rules on State aid.

• Primary Source

European Commission: Press Release, 06.04.18: Commission approves compensation granted by France to the French post office for its territorial coverage http://europa.eu/rapid/press-release_IP-18-2843_en.htm

---