The European Commission has determined that state aid granted by Belgium to its national post operator Bpost is in line with European rules.
As reported by Le Soir, on 24 May the Commission approved aid granted by the Belgian State for Bpost to deliver newspapers and magazines between January 2023 and June 2024, through the press concession scheme.
The scheme allows a government-designated distributor to circulate newspapers and magazines to regions where publishers don't have an alternative option.
Bpost has historically been the scheme distributor. While concession contracts were initially due to expire on 31 December 2022, they have been extended twice by Belgian authorities without a new tender process.
At the end of 2023, the Federal Government decided to phase out the concession contract system in favour of a tax credit for publishers, and the contracts with Bpost were extended for a final six months to allow stakeholders to prepare for the changes.
For each contract, Bpost has been compensated and received state aid – a process that is strictly governed by EU rules.
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The European Commission has now confirmed that the aid given to Bpost by Belgium is in conformity with these rules, as the subsidy to deliver newspapers and magazines serves the general economic interest.
Phasing out of the state concession for newspaper and magazine distribution has led to a series of strike actions by Bpost workers, who have voiced concerns about deterioration of the delivery service and what it could mean for staff.
In a quarterly update published last month, the Bpost Group said it is doing its "utmost" to reach an agreement to end ongoing strike action by its workers.
Bpost Group, which is 51% owned by the Belgian State, saw its operating income fall by 5.3% in the first quarter of this year, to €993 million.
