Hungary: Postal Market Opens Next Year

Last week, the Hungarian parliament approved a new act to open all postal services in Hungary to private sector companies, thus eliminating the monopoly of state-owned Magyar Posta Zrt.

The opening of the Hungarian postal services market is based on the relevant EU directives that require Hungary and other member states, such as the Czech Republic, Luxemburg, Greece, Poland and Romania, to implement full liberalization in their postal services markets by the start of 2013.

Although competitors may enter the market, it is the government's openly declared intention to preserve the dominant position of Magyar Posta Zrt. The government therefore will maintain Magyar Posta Zrt's universal service provider status until the end of 2020 to guarantee that postal services are publicly available at affordable prices. Under the new act, the losses of Magyar Posta Zrt stemming from the provision of those services that are deemed indispensable though not profitable may