German regulator sets stamp price guidelines, shrugging off DHL protest

By Matthias Inverardi

DUESSELDORF (Reuters) -Germany’s network regulator confirmed its guidelines for the pricing of postage stamps on Monday, refusing to go beyond its proposed ranges despite protest by the national operator Deutsche Post, owned by logistics group DHL.

DHL has criticised the regulator, which first proposed the pricing guidelines in September, for not giving the postal system enough leeway to respond to rising inflation and falling letter volumes.

The company said the new pricing framework endangered its legally set profit margin target of 6.5% and therefore made planned investments no longer feasible.

“With its decision, the Federal Network Agency is thwarting the objectives and requirements of the legislator with an impact on the entire industry,” a DHL spokesperson said.

Network regulator president Klaus Mueller rejected the company’s concerns, saying in a statement: “If we were to follow the demands, consumers and companies would be doubly burdened.”

A source said the regulator was looking calmly at the possibility of a lawsuit by DHL against its decision.

The guidelines are to apply from the start of 2025 until the end of 2026, and see stamp prices for private and business mail rising by an average of 10.48%. Parcels would see a 7.21% increase.

For example, this would allow the cost of sending a standard letter to increase from a current 85 cents ($0.91) to 1 euro, with the postal service now expected to set new prices.

($1 = 0.9369 euros)

(Reporting by Matthias Inverardi, Writing by Rachel More, Editing by Miranda Murray and Matthias Williams)