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Estonian Competition Authority

Harju County Court confirmed the abuse of dominant position by AS Eesti Post

Harju County Court made a decision on 27 April 2012 confirming the decision of 16 November 2011 of the Estonian Competition Authority regarding the infringement of the Competition Act by AS Eesti Post, but reduced the fine imposed on AS Eesti Post pursuant to the Competition Act § 73 section 2 to 18 000 euros.

On 16 November 2011 the Estonian Competition Authority imposed on AS Eesti Post a fine totaling 36 000 euros for having committed infringements of the Competition Act in September 2010. The incumbent AS Eesti Post was engaged in two different episodes of abusive conduct towards AS Itella Information Services by offering the latter services under unfavorable conditions.

AS Itella Information helps its clients to arrange the deportation of postal items by providing services such as printing, enveloping, sorting, etc.  A similar service is also provided by a subsidiary of AS Eesti Post – AS Eesti Elektronpost. Neither of the two companies delivers mails by themselves and both are obliged to buy the services from a postal services undertaking (operator). AS Eesti Post is by far the largest operator in Estonia being the only one possessing a national postal network. Therefore, in case of larger orders, AS Itella Information usually has to use the services provided by AS Eesti Post.

In September 2010, the Ministry of Finance held the public procurement for so-called euro-calculators and AS Eesti Energia held the public procurement for informing the public about the exchange of its information system. On the mentioned procurements, AS Eesti Post offered significantly more favorable terms for the delivery of the mailings prepared by AS Eesti Elektronpost than for AS Itella Information. As a result, AS Itella Information was no longer competitive in these procurements.