ACCC - no cross-subsidy from reserved service

This week the Australian Competition and Consumer Commission issued its tenth report assessing cross-subsidy between the services provided by Australia Post. The report found that the reserved service (70c stamp) is not subsidising any part of Australia Post’s competitive business.The ACCC noted that in 2013-14 Australia Post’s monopoly letter services were unable to recover their costs, let alone cross-subsidise other parts of Australia Post's business.In 2004 the ACCC was given the power to issue record-keeping rules in response to complaints by Australia Post’s competitors that Australia Post was cross-subsidising its competitive services with revenues from its monopoly services.The full report can be downloaded from the ACCC website.