UPS Urges Breakup of Deutsche Post

United Parcel Service got a cool reception from the European Commission to its request to consider that Deutsche Post AG split its activities, which include Danzas Holding and Air Express International.

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Since 1994, the U.S. giant of parcel delivery has accused the firm of abusing its monopoly position by using subsidies to undercut competitors.

The EC started an investigation in July into whether Deutsche Post is overcompensated by the German government for running the country’s mail service. It will attempt to determine how much aid the government gave, and how much of that assistance is legal under the European Union antitrust rules.

But the likelihood of a breakup of the service is doubtful.

“The notion that a company could be broken up is farfetched,” said Jonathan Faull, a spokesman for the EC.

“If they rule in our favor, then we would have to argue remedy,” said Norman Black, a UPS spokesman. “A split of its activities would be one approach to the problem.”