PostEurop today released a new study by Copenhagen Economics assessing the level of competition in EU e‑commerce parcel delivery markets. The findings show no evidence of structural competition problems, confirming that the sector is competitive, dynamic, and innovative, and that sector‑specific regulation is not justified.
The study comes as the European Commission considers to introduce a new EU Delivery Act as part of its review of the regulatory framework for postal and delivery services.
Key Findings
The study concludes that the EU e‑commerce parcel delivery market demonstrates competitive market structure, healthy firm conduct, and strong performance for consumers.
- Competitive market structure
The market includes multiple operators with diverse business models, strong buyer power from e‑merchants, and no binding legal barriers to entry. Parcel market shares (37–50% for the main operator) are significantly more dispersed than in letter markets (82–94%), indicating stronger rivalry. - Healthy firm conduct
Operators show moderate profitability, active entry and expansion, and continuous investment in service quality and innovation. Price differences between domestic and cross‑border services largely reflect underlying cost differences. - Strong consumer outcomes
Consumers benefit from a wide range of delivery options, high service reliability, and affordable prices. Delivery costs represent around 0.9% of annual expenditure for frequent online shoppers, with high satisfaction levels across delivery types and geographies.
Sector-specific regulation not justified
The study finds no structural market failures that would justify sector‑specific (ex‑ante) rules for parcels. It highlights that operators already compete not only with each other but also with large global e‑commerce platforms, which hold strong power on the demand side and act simultaneously as major clients and important competitors.
Given these dynamics, the study warns that regulation of such well-functioning and competitive e-commerce parcel market could risk regulatory failure, potentially harming innovation, investment, and service quality. It recommends a minimal regulatory intervention approach, relying on existing competition law and maintaining a narrow, essential‑services USO.
Elena Fernandez-Rodríguez, Chairwoman of PostEurop Board of Directors, said “This study provides clear, independent evidence that Europe’s e‑commerce parcel delivery market is competitive and functioning well. As the Commission considers future regulation, it is essential that policy decisions are grounded in facts and support Europe’s competitiveness.”
PostEurop will continue engaging with EU institutions, Member States, and stakeholders as discussions on the EU Delivery Act progress.
For more information, please contact:
Cynthia Wee-Neumann
Communications Manager
E: cynthia.wee@posteurop.org