Swiss WEKO Examines Acquisition of Quickmail by the Post

The Competition Commission (WEKO) will conduct an in-depth examination of the merger plan between Swiss Post and Quickmail. The Post intends to acquire the financially troubled Quickmail Group. There are indications that the merger could establish or strengthen a dominant market position in various markets.

(Bern) The Quickmail Group, with its two subsidiaries Quickmail and Quickpac, delivers letters, unaddressed items (e.g., advertising flyers), newspapers, magazines, and packages throughout Switzerland. The Swiss Post is also active in these areas. The merger could potentially establish or strengthen a dominant market position in various letter and parcel markets as well as in the market for the delivery of newspapers and magazines.

The Post claims that this is a restructuring acquisition. The WEKO can allow such an acquisition even if it is problematic from a competitive standpoint, provided that the negative effects on competition would arise even without the merger. For instance, if the Quickmail Group were to disappear from the market in a short time without support, a large portion of its customer base would likely switch to the Post anyway.

No More Competition-Friendly Alternative

Furthermore, there is unlikely to be a more competition-friendly alternative to the merger, such as the acquisition of the Quickmail Group by another company other than the Post. Whether these conditions are met will be assessed by the WEKO within the legally stipulated four months.

Photo: © Quickmail/Quickpac