Omniva to seek European Commission assessment of postal market competition conditions in Latvia and Lithuania
Omniva has decided to prepare submissions to the European Commission regarding the financing frameworks of Universal Postal Services (UPS) in both Latvia and Lithuania.
The purpose of the submissions is to request an independent assessment of whether the current systems provide sufficient safeguards to ensure transparency and fair competition in commercial postal, parcel and logistics markets.
It is important to emphasize that Omniva does not question the importance of Universal Postal Services or the principle that services provided in the public interest may be compensated by the state. Rather, we believe that public funding should be used transparently and that regulated activities should remain clearly separated from commercial operations in competitive markets.
“Universal Postal Services play an important role in ensuring access to essential services for citizens. Our objective is not to challenge this principle, but to seek clarity regarding how public compensation interacts with commercial activities in increasingly competitive parcel and logistics markets,” said Martti Kuldma, CEO of Omniva Group.
Over the past years, postal and parcel markets across the Baltics have undergone significant transformation, driven by e-commerce growth, technological innovation and increasing competition. At the same time, Omniva has observed developments that raise legitimate questions regarding transparency, cost allocation and the relationship between regulated and commercial activities.
In Lithuania, these questions were further highlighted during the Universal Postal Service selection process. Last week, Omniva announced its withdrawal from the process after concluding that the remaining timeline no longer provided sufficient certainty for a potential provider to responsibly prepare for the transition.
In Latvia, Omniva and other market participants have previously expressed concerns regarding the decision to extend the existing Universal Postal Service arrangement without launching a new competitive selection process. This has also contributed to broader discussions regarding transparency, market access and competition in the sector.
“We believe that competition, innovation and equal market conditions benefit customers, businesses and society as a whole. Where questions arise regarding the application of state aid and competition rules, they should be assessed independently and transparently by the appropriate European institutions,” added Martti Kuldma.
Omniva has engaged external legal and economic experts to evaluate the available information and prepare the necessary documentation for submission to the European Commission.
The company remains committed to serving customers and businesses across the Baltics and views this initiative as a constructive step towards greater transparency, regulatory clarity and the long-term sustainability of the postal and logistics sector.