According to PostNL, the solution is straightforward: a €68 million financial injection is needed, along with an extended delivery timeframe of 3 days instead of 24 hours.

Monopoly position

Maarten Pieter Schinkel, Professor of Competition Economics and Regulation at the University of Amsterdam, disagrees. He sees PostNL’s private monopoly as a fundamental problem. Since PostNL took over Sandd (initially blocked by the Dutch Authority for Consumers and Markets (ACM) but later approved by Secretary of State Mona Keijzer), there is no longer a nationwide competitor. As a result, letter senders have no choice.

Reforms

Schinkel identifies two ways to reform the postal market. ‘The best option is to nationalise PostNL’s letter delivery service while allowing only the commercial parcel service to remain in the competitive market. The infrastructure—such as sorting centres, mailboxes, and postal workers—would then be owned by the state, which could regularly invite multiple companies to compete for the right to offer the letter delivery service.’

Schinkel expects that a clear structure would attract other parties interested in handling letter deliveries, if needed for minimal government compensation. DHL is already taking a first step in this direction. The parcel company aims to compete with PostNL by offering guaranteed delivery within 24 hours and similar pricing for heavier packages.

Another option is stricter regulation of PostNL. ‘A private monopoly without adequate supervision leads to higher prices and worsening working conditions,’ says Schinkel. ‘There should be price caps for letter mail and stricter enforcement of fair labour conditions.’