FCCA finds no evidence of predatory pricing in the distribution of unaddressed advertising by Posti

The Finnish Competition and Consumer Authority (FCCA) investigated whether Posti Oy, a Finnish post-al operator, abused its dominant market position by providing unaddressed advertising distribution service to its customers at a price below cost. The FCCA’s investigation found no evidence that Posti’s actions would restrict competition.

In 2017, Suomen Suoramainonta Oy (SSM) submitted a request for action to the FCCA in which it requested the FCCA to investigate whether Posti was guilty of prohibited predatory pricing in the market for the distribution of unaddressed mail. According to the request for action, Posti was providing its Kotisuora (Home Direct) product especially to its largest customers at a price below cost to exclude SSM from the market. The Kotisuora product is an unaddressed advertising service where the customer’s advertisement is delivered inside Posti’s own folded Postinen advertising leaflet. According to SSM, Posti’s predatory pricing practices have forced SSM to lower its own prices and thus hindered its operation in the market.

The FCCA investigated the pricing of Posti’s Kotisuora product and carried out an economic analysis of the matter. According to the FCCA’s analysis, Posti’s pricing has been profitable and the price of its unaddressed advertising distribution service has covered its costs. In addition, the FCCA’s investigation found no evidence that Posti’s activities had been exclusionary in nature.

The FCCA has closed its investigation of the matter. The FCCA may, however, reopen its investigation if new information emerges that gives reason to suspect that Posti’s actions are in violation of the Competition Act.

Specialist Annastina Hellsten tel. +358 29 505 3015,