EC to Decide on Fine Against Deutsche Post

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The European Union's European Commission plans to decide today on a possible fine against Deutsche Post, which is accused of using profits from its monopoly letter business to subsidize other activities, according to reports.

Though an EC spokesman wouldn't say whether there would be a fine or how much it might be, insiders said the German postal company could face more than 800 million euros ($759 million) in penalties.

United Parcel Service and other parcel competitors have complained that Deutsche Post offers package services at prices below service costs. The companies charge that Deutsche Post makes up the difference with funds from its monopoly letter business.


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