New study: Dynamic postal markets call for careful consideration of future regulation

New study: Dynamic postal markets call for careful consideration of future regulation

August 13, 2020

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.

Learn more about the study
For further information, please contact Anna Möller Boivie and Bruno Basalisco