The postal sector has been characterised by changes linked to digitisation, which have gained momentum in recent years. There has been a gradual but significant decline in the use of traditional mail. Forwarding of shipments is increasing as e-commerce volumes grow.
Only two companies – AS Eesti Post and Express Post AS – carry out domestic delivery of parcels and subscriptions. AS Eesti Post collects and delivers parcels all over Estonia and carries out distribution of subscriptions in rural areas. Express Post AS collects, sorts, and delivers parcels to business customers all over Estonia and carries out deliveries of subscriptions in major cities: in Tallinn, Tartu, Pärnu, and Viljandi. AS Eesti Post provides universal postal service.
The Competition Authority regulates the supervision of the provision of universal postal services (UPT). The prices of the UPT service are set by the minister responsible for the sector on the basis of a proposal from the authority. A ‘UPT Fund’ has been set up to compensate for unreasonably burdensome costs incurred in the provision of UPT.
Contributions to the fund are made by licensed companies for services similar to UPT services – by volume of express deliveries and packages. The specific contribution rates are laid down by a regulation of the Government of the Republic. Two companies contribute to the UPT Fund – AS Eesti Post and Express Post AS.
In addition to the UPT price, the authority is also responsible for resolving consumer complaints and preparing an annual sector overview.