The EU Commission concludes on the constitution and the compatibility of a State aid in the postal service market (Poste Italiane)

* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.

How to Compensate for the Extra Cost of Public Service Obligations: Step-by-Step Guidance on a Complex Calculation* Introduction The two most difficult issues in the design of State aid measures to support services of general economic interest [SGEI] are the proper definition of the public service obligation [PSO] and the identification of the “counterfactual” on the basis of which the public service compensation [PSC] is calculated. In the period 2017-2019, the Italian postal service, Poste Italiane [PI], was obliged to reduce the tariffs it applied to items mailed by publishers and non-profit organizations. At the same time, it was compensated for the forgone revenue [the difference between the normal tariff and the reduced tariff] from the handling of items such as books,

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Phedon Nicolaides, The EU Commission concludes on the constitution and the compatibility of a State aid in the postal service market (Poste Italiane), 22 July 2019, e-Competitions July 2019, Art. N° 93447

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