Infosession EU Perspective

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1 Infosession EU Perspective Robert Pochmarski Postal and Online Services European Paper Week, 27 November 2013, BRUSSELS

2 th Application Report 5 th Application Report Application Reports 1.Conference Brussels 2.Conference Valencia Green Paper on x- border parcel delivery Legal Acts? Postal Users Forum Sector Studies Assistance to Member States in implementation Market monitoring and screening of legislation ERGP 50 g 2011 FMO 16 MS 2013 FMO 12 MS Gradual Market Opening Internal Postal Market

3 5th Application Report [ ] The Commission shall submit a report to the European Parliament and the Council on the application of this Directive, including appropriate information on developments in the sector, particularly concerning economic, social, employment patterns and technological aspects, as well as on quality of service. The report shall be accompanied, where appropriate, by proposals to the European Parliament and the Council.

4 The European postal sector: 2007 EUR 94 billion 2011 EUR 91 billion Source: ITA/WIK (2009) Letter post 56% Letter post (bn items) Parcel & express 44% Letter post 48% Parcel & express 52% Parcel & express (bn items Sources: WIK survey and WIK research (for letter post); A.T.Kearney for parcel & express Sources: ITA/WIK (2009), WIK survey and WIK Research, A.T. Kearney (parcel & express volume 2008)

5 Volumes of postal items Letter post volume (bn items) % p.a % Southern Eastern EU-28 countries Source: countries WIK survey average and WIK research Letter post revenue (bn EUR) % p.a Sources: ITA/WIK (2009), WIK survey and WIK Research Western countries Letter post items per capita Western countries 5 2 Southern countries Eastern countries -1.4% Parcels per capita 13 EU-28 average

6 Letter post items per capita Letters (individualized correspondence) are most affected most pessimistic outlook. Mixed expectations with regard to direct mail. 300 Periodicals: Continuous but less decline compared to letters expected AT BE DEDK FR FI IE LU NL SE UK IS LI NOCHCY EL ES IT MT PT BGCZ EEHRHU LT LV PL RO SI SK Western countries Southern countries Eastern countries Source: WIK survey and WIK research

7 European parcel & express markets: -are substantially growing -main reason: growth in domestic and cross-border e-commerce (B2B mainly driven by economy, B2C more by e-commerce) 1,400 Distance selling: Revenues per capita (EUR) 1,200 1, AT BE DE DK FI FR IE NL SE UK NO CH EL ES IT PT CZ HU PL RO SK Western countries Southern countries Eastern countries Source: Based on EMOTA, IMR Smart Knowledge base and Eurostat

8 Legislative implementation of Directive 2008/6/EC almost completed Conformity check Best practice/future issues 26/11/2013

9 Postal Services Ensured as Universal Services, 2013 (NRA) Blue fill = universal service according to NRA. Blue fill with shading = USP disagrees with NRA designation as universal service. White space with shading = USP considers the service to be universal service even though the NRA does not. AT BE BG CY CZ DE DK EE EL ES FI FR HR HU IE IT LT LU LV MT NL PL PT RO SE SI SK UK IS NO CH Basic letter post (FSC) Bulk letters Direct mail Periodicals Non-priority letter post Basic parcel post Bulk parcels

10 Universal Services Member States are moving gradually to limiting the scope of universal services to a smaller number of services Member States that provide financial support for universal services do so almost exclusively using general tax revenues rather than compensation funds - more requests for compensation in the future? An example: In 2012, Denmark had only about one-quarter as many letter post items per capita as in it had in 1988 (123 versus 434) future questions? 26/11/2013

11 Green Paper on parcel delivery - Reminder "E-Commerce-origin" > E- commerce communication* : Parcel Delivery as key issue for positive development of e- commerce ; High potential currently not used; e-retailers and consumers see room for improvement concerning products ordered online; Dissatisfaction with (cross-border) delivery systems. Commission Communication to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, "A coherent framework to build trust in the Digital single market for e-commerce and online services", 2012 SEC(2011) 1641 final

12 Green Paper on parcel delivery Some Figures Big differences: 82% of internet users in the UK bought something online in 2012, only 11% of internet users in Romania did so; Cross border gap: 54% of EU internet users had bought online from an e-retailer from their own country in 2012, only 14% had bought online from a cross-border e-retailer 14% of all enterprises having made electronic sales to their own country and only 6% to other EU countries

13 Overview - regulatory environment Provisions affecting contracts Provisions affecting transport and logistics (cross-border) parcel delivery high quality reliability affordability transparency Data protection VAT International Postal framework Standards Consumer protection framework 13

14 Green Paper on parcel delivery - Main Issues Increased transparency and information for all actors along the e- commerce value chain Enhanced complaint handling and redress mechanisms for consumers Improved availability, quality and affordability of delivery solutions

15 Green Paper on parcel delivery - Actions responses to the Green Paper consultation (>100) confirm problem(s) and issues needs of consumers and e-retailers are not always met in terms of speed, quality, reliability or cost of delivery general provisions on consumer protection or the collection of statistical data also apply also outside the scope of the universal service delivery is a key factor in the overall development of e-commerce (only) 5-10% of cross-border parcel delivery flows fall under the universal service provisions (mainly C2C) 26/11/2013

16 Green Paper on parcel delivery - Actions Consumer Rights Directive (13/6/2014) will significantly enhance information and transparency in the area of online shopping by: - elimination of hidden charges, - price transparency for distance and off-premises contracts; - better refund rights (e.g. reimbursement of delivery costs) - and clear information requirements concerning the costs of returning purchased items in case of a withdrawal. Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council

17 Green Paper on parcel delivery - Actions Alternative and Online Dispute Resolution (ADR and ODR) will further improve dispute resolution mechanisms effect on Article 19 PSD Environmental and transport aspects are important for the sustainable development of delivery services and for the reduction of the high costs of the 'first' and 'last' mile services (Transport White Paper) Social aspects: Social partners play an important role, social dialogue committee (skills). Directive 2013/11/EU, Directive on consumer ADR, OJ L 165, , p. 63; Regulation (EU) No 524/2013, Regulation on consumer ODR, OJ L 165, , p. 51. White Paper - Roadmap to a Single European Transport Area Towards a competitive and resource efficient transport system - COM(2011) 144 final

18 Green Paper on parcel delivery - Actions Action beyond the current regulatory framework necessary lack of inter-operability between delivery operators is in fact much less a consequence of regulatory fragmentation than of traditional operational structures growing demand to provide high quality and affordable cross-border B2C parcel services represents both a new challenge for traditional postal operators and at the same time one of the most promising growth markets Therefore: Mainly an industry led process currently no legislative action.

19 Green Paper on parcel delivery - Actions potential of market forces to bring about efficient solutions need to preserve crucial public policy interests (e.g. access to the benefits of e- commerce for less powerful players such as SMEs and inhabitants of remote/rural areas) Commission welcomes commitments by universal service providers (PostEurop, IPC) there are also other challenges and other actors (operators, e-retailers, Member States and regulatory bodies)

20 Next Steps

21 arket/post/index_en.htm

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