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Business

Deutsche Post Disputes Penalty It Must Pay to German Government

In the dispute over a European Commission requirement that the German postal service, Deutsche Post, repay millions of euros to the German Government, Deutsche Post complained it is being asked to repay more than that was agreed when the penalty was handed down. Deutsche Post announced that it received a payment demand from the German Finance Ministry in the amount of 906 million euro, including interest. However, the mail service said it planned to dispute the bill, since it claims the interest calculations are not accurate. In July, the European Commission ruled that Deutsche Post had to pay the German federal government 572 million euro, including interest accrued since 1994, for allegedly shifting that amount from its profitable letter delivery service to its failing package delivery arm, thereby breaching EU rules.