Omniva to seek EC assessment of postal market competition conditions in Latvia
Omniva has decided submit claim to the European Commission requesting an assessment of whether the current framework for financing the Universal Postal Service (UPS) in Latvia provides sufficient safeguards to ensure transparency and fair competition in commercial postal and parcel markets.
The company emphasizes that it does not question the importance of the Universal Postal Service or the principle of public compensation for services provided in the public interest. Instead, Omniva believes that it is important to ensure that public funding is used transparently and that regulated activities remain clearly separated from commercial operations in competitive markets.
“Universal Postal Services play an important role in ensuring accessibility of services for citizens across the country. Our objective is not to challenge this principle, but to seek clarity regarding the interaction between public compensation and commercial activities in increasingly competitive parcel and logistics markets,” said Martti Kuldma CEO at Omniva Group..
According to Omniva, the European Commission is the appropriate institution to assess such questions under European Union state aid and competition rules. The company has therefore engaged external legal and economic experts to evaluate the available information and prepare the necessary documentation.
“In recent years, postal markets have changed significantly. Competition, innovation and new delivery models benefit customers, businesses, and the public sector alike. We believe that transparency and equal market conditions are important for ensuring the long-term sustainability of these markets,” added Martti Kuldma.
The planned submission also comes against the backdrop of ongoing discussions regarding the future orgnization of Universal Postal Services in Latvia. Earlier, last year, Omniva and other market participants publicly expressed concerns regarding the decision to extend the existing Universal Postal Service arrangement without launching a new competitive selection process. This issue also reinforces broader questions regarding transparency, market access and competition in the postal sector.
Omniva remains committed to serving customers in Latvia and across the Baltics and views the planned submission as a constructive step towards greater transparency and regulatory clarity for all market participants.
Omniva is also preparing a similar submission concerning Lithuania, reflecting broader questions regarding transparency, fair competition and the interaction between public compensation and commercial activities in the Baltic postal market.