In the light of the ongoing evaluation of the EU Postal Services Directive, a relevant question for many industry stakeholders is whether the current market reality warrants more sector-specific regulation on top of the existing regulatory framework.
In this new study, we investigate this question by first looking at the basic economic principles for when and how to regulate postal and delivery markets. We thereafter present new empirical evidence regarding the competitive landscape of e-commerce delivery markets in Europe.
Based on our analysis, we find that:
- The dynamic characteristics of postal and delivery markets mean that careful consideration is needed of whether there is any need for additional regulatory remedies and, if so, what remedies would be appropriate.
- Choice and innovation in EU postal and delivery markets seem to eliminate the need for more regulation of parcel delivery services related to ecommerce purchases.
- In terms of the evaluation of the Postal Services Directive in the EU, policymakers should consider carefully what market failures the regulation aims to address and avoid overlaps and conflicts with other regulatory frameworks.