Postal Reorganization Act

Introduction and definition of the Postal Reorganization Act

Das Postal Reorganization Act (abbreviated: PostNG) is a significant federal law of the Federal Republic of Germany, created as part of the privatization and reorganization of the state postal service in the early 1990s. Its goal was the comprehensive restructuring of the previously monopolistically organized postal sector. The Postal Reorganization Act was particularly aimed at the dissolution of the Deutsche Bundespost, the establishment of independent successor companies, and the fundamental redesign of the regulatory framework in the field of postal services.

Origin and historical development

Initial situation before the Postal Reorganization Act

Prior to the entry into force of the Postal Reorganization Act, the postal system in Germany was in the hands of the Deutsche Bundespost, a federal corporation under public law. It performed the tasks of the postal, telecommunications, and transport sectors in a comprehensive monopoly.

Legislative intent

The European movement toward the liberalization of utility markets and requirements from the European Communities also necessitated a restructuring of the German postal sector. With the Postal Reorganization Act, the Federal Government laid the foundation for privatization, market opening, and modern regulation.

Adoption and entry into force

The Postal Reorganization Act was promulgated in the Federal Law Gazette on September 14, 1994 (BGBl. I p. 2325) and entered into force on January 1, 1995. Together with subsequent laws, particularly the Postal Act (PostG) and the Telecommunications Act (TKG), it forms the legal foundation for the organization and regulation of the postal sector in Germany.

Structure and regulatory content

Subject and purpose of the Postal Reorganization Act

The Postal Reorganization Act specifically regulated: The dissolution of the Deutsche Bundespost as a unified public institution The transformation of post offices into joint-stock companies organized under private law The transfer of assets, equity, personnel, and sovereign responsibilities to successor companies The establishment and responsibilities of regulatory authorities Employment law transitional provisions for Bundespost employees

The Deutsche Bundespost was dissolved and transferred into three independent joint-stock companies: Deutsche Post AG (postal services) Deutsche Telekom AG (telecommunications services) Postbank AG (financial services)

Each company assumed assets, liabilities, and employees according to statutory requirements.

Transfer of responsibilities and assets

With the entry into force of the Act, all responsibilities, property, and liabilities were transferred to the respective successor companies. Organizational, liability, and employment law provisions ensured an orderly transition and the protection of employee rights.

Legal form and capital structure

The successor companies were each established as joint-stock companies under German law. At first, the Federal Republic of Germany retained ownership. The later gradual stock market flotation was prepared by law.

Regulatory framework and supervision

Federal supervision and Federal Agency for Posts and Telecommunications

The Act established the Federal Agency for Posts and Telecommunications Deutsche Bundespost as the central supervisory authority. The main tasks were: Monitoring the compliance with statutory requirements by the successor companies Performing sovereign tasks, such as assigning postal codes and ensuring comprehensive basic postal services Management of special assets and pension schemes for former employees

The Postal Reorganization Act was the basis for further key laws, including: Postal Act (PostG): Regulates the specified framework conditions of the postal market and the supervision of postal services. Telecommunications Act (TKG): Regulates competition and the conditions for telecommunications services in Germany.

Federal Law Gazette Part I 1994, p. 2325 ff. (official legal text) Jarass, Hans D./Pieroth, Bodo: Basic Law for the Federal Republic of Germany, Commentary Schulz, Wolfgang: The Privatization of the Post, in: Verwaltung & Management, 2/1996, pp. 37-45

Note: This factual article serves to provide comprehensive information and describe the legal framework of the Postal Reorganization Act within a legal encyclopedia. For further detailed questions, it is advisable to consult the legal text and relevant specialist literature.

Frequently Asked Questions

What impact does the Postal Reorganization Act have on existing postal service providers and their licensing requirements?

The Postal Reorganization Act (PostNeuOG) introduces fundamental changes to the previous regulatory framework for postal services. Existing postal service providers must review their business models and operations, particularly with regard to licensing and notification of their activities, due to the new legal situation. While previously there was a classical licensing requirement to provide postal services, the PostNeuOG now draws clearer distinctions between activities requiring a license, those that need to be notified, and those that are exempt from approval. Companies that were already operating before the PostNeuOG came into force are subject to transitional arrangements that contain specific deadlines and conditions for compliance with the new requirements. Especially relevant is whether certain services—such as mail transport or delivery—continue to require official authorization due to changed thresholds and new criteria. In addition, changes concerning data protection, compliance with minimum requirements for universal services, and compliance with labor and social standards must be observed. The Federal Network Agency has been given extended powers to monitor and penalize violations. Thus, existing postal service providers must determine whether new notifications or even new license applications are required for their continued operations and should also adjust their processes to fulfill information and documentation obligations to the regulatory authority.

What regulations does the Postal Reorganization Act contain regarding the obligation to provide universal services?

The PostNeuOG defines and expands the requirements for so-called universal services, which must be provided nationwide for consumers. The obligation to provide universal services is increasingly tied to objective, transparently verifiable criteria. It is now required to demonstrate that the provision of certain core elements of basic postal services, such as letter mail and—in part—parcel services, is ensured nationwide at affordable prices. If no market participant voluntarily offers sufficient services, the Federal Network Agency may oblige companies to provide universal services, following clearly established legal procedures. Unlike previous law, the Act also specifies under what conditions service standards, such as the minimum frequency of deliveries or specific quality parameters, can be modified. Costs incurred by a company as a result of the universal service obligation may be compensated under certain conditions—the Act includes, for the first time, statutory provisions on universal service compensation. The law also contains detailed rules on the handling of complaints and disputes regarding compliance with universal service requirements.

What supervisory changes does the Postal Reorganization Act introduce and how do these affect regulatory practice?

With the entry into force of the PostNeuOG, the Federal Network Agency receives expanded monitoring and intervention powers. The focus is particularly on market supervision, oversight of licensing and notification requirements, as well as monitoring compliance with universal service obligations and social minimum standards in the employment relationships of delivery personnel. The offenses subject to fines have been expanded and defined more precisely, so that violations of newly introduced obligations—such as stricter verification and documentation duties or breaches of requirements for price transparency—can be sanctioned more quickly and consistently. The Federal Network Agency is authorized to obtain information regularly, to conduct inspections, and to examine business documents unannounced. To prevent distortions of competition, the regulatory authority can also specifically identify and prohibit abusive pricing practices. The authority is expressly tasked with acting as an arbitration body in disputes between service providers or between service providers and customers. Companies should be prepared for ongoing and event-driven audits to a significantly greater extent.

How does the Postal Reorganization Act impact pricing for postal services?

The PostNeuOG introduces explicit requirements for the transparency and appropriateness of prices for postal services, particularly the prices for universal services. Price increases are subject to stricter notification requirements and must be thoroughly justified by the companies. The Federal Network Agency is authorized to review price changes and, if they do not meet statutory requirements, to reject them. The decisive factor is that charges must be transparent, non-discriminatory, and structured in line with actual costs. In particular, it is expressly required that there should be no cross-subsidization of competitive services by universal service prices. The Act also requires companies to provide customers with greater transparency regarding cost structure and pricing, and to disclose detailed information when necessary. The previous blanket rules for tariff approval are replaced by a more differentiated review process, in which relevant economic and social factors are considered more comprehensively.

What specific requirements does the Postal Reorganization Act set for protecting employee rights at postal service providers?

A central aim of the PostNeuOG is to improve working conditions in the postal sector. The Act obliges postal service providers, especially those with universal service obligations, to ensure minimum standards in occupational health and safety, wages, and working time regulations. For the first time, specific documentation requirements are introduced, requiring companies to regularly demonstrate that both their own employees and subcontractor personnel work under the legally prescribed conditions. The purpose of these provisions is to prevent wage dumping and ensure fair competition. The law gives supervisory authorities the possibility to conduct targeted inspections and to impose substantial fines for violations. Companies must also ensure that when contracts are awarded to third parties, the statutory requirements are complied with and that implementation can be verified. In addition, the law includes provisions for the involvement of works and staff councils and for reporting labor law violations to the Federal Network Agency.

What impact does the Postal Reorganization Act have on data protection and postal secrecy?

The PostNeuOG incorporates existing requirements from the General Data Protection Regulation (GDPR), the Federal Data Protection Act, including special regulations on postal secrecy, and supplements them. Postal service providers are required to securely process particularly sensitive personal data—of both senders and recipients—ensuring that transmission and storage are only for specific purposes and only to the extent necessary. The Act imposes stricter technical and organizational measures to protect against unauthorized access and obliges processors and subcontractors to uphold the same standards. Violations of postal secrecy or other data protection regulations can result in fines as well as additional supervisory actions, such as the temporary withdrawal of the license or closure of operations. Obligations for transparency toward data subjects, such as in relation to the right to information and erasure, are also explicitly regulated. Cooperation with data protection officers and mandatory reporting of data breaches are clearly set out, as are effective complaint mechanisms for affected parties.