Correos fined for breach of settlement agreement

 

On 23 August 2011, the Council of the Spanish Competition Commission (SCC) imposed a fine of €4.8 million against the Spanish Postal Service (Correos) for not their failure to comply with the content of a settlement agreement which was agreed to on 15 September 2005.

Under the terms of this agreement, Correos agreed to ensure that the final price of its services would cover all real costs, and to terminate any contracts which may result in the application of 'predatory prices'.

The commission found evidence that the Spanish Postal Operataor had applied a number of discounts in 2008 and 2009 to a number of large industrial clients which would have resulted in the application of prices below cost.