Who pays for the post?

According to Jansen, the case centres on a fundamental question: what can be expected of a private company when it is appointed to deliver a loss-making public service of general interest?

Statutory duty and financial decline

The UPD obliges PostNL to deliver consumer post throughout the Netherlands at rates regulated by the Authority for Consumers and Markets (ACM). Each year, the ACM sets what is known as the tariff margin: the maximum average rate PostNL is allowed to charge.

While this system used to be profitable due to scale and efficiency, the volume of letter post is now structurally declining, while costs – partly due to rising wages – continue to increase. The ACM acknowledges that the current model is financially unsustainable in the long run. “Both the regulator and the minister recognise that a company cannot be expected to continue providing a loss-making service at its own expense,” says Jansen.

Government measure too late, says PostNL

Minister Vincent Karremans recently decided to relax the delivery standard from 2026: no longer within 24 hours, but within 48. This easing is intended to reduce operational costs and thus make financial support unnecessary.

PostNL, however, argues that this measure comes too late, and that compensation is needed now to continue fulfilling its statutory duty in a cost-effective manner. The company is requesting €68 million, partly invoking the European Postal Directive, which obliges member states to ensure a sustainable universal postal service. “PostNL will likely argue that the minister should have assessed whether carrying out the universal service obligation poses a disproportionate burden,” Jansen notes, “and that the lack of compensation constitutes a breach of the directive.”

Limits of public duties in private hands

This case also touches on a broader issue: the limits of assigning public duties to private entities. “Legally, it becomes difficult to justify when the legislature designates a private party to provide a service of general economic interest that may be unprofitable, without offering any financial support,” Jansen states. “This is something we see in other European countries as well.”

PostNL has also filed for interim relief: an advance on the requested compensation, pending a final ruling. As such, the matter is not just a legal battle but also a politically charged debate on the role of the market and government in providing essential services.