Dive Brief:
- The House Committee on Oversight and Government Reform has requested details from the U.S. Postmaster General on the United States Postal Service’s competitive services.
- Competitors UPS and FedEx say that USPS holds an unfair advantage in attracting package delivery business.
- The Postal Service is permitted to offer services competitive services with private package-delivery concerns, but can’t subsidize customers’ use.
Dive Insight:
House Republicans Jason Chaffetz and Mark Meadows issued a letter to Postmaster General Megan Brennan demanding details on a number of USPS initiatives, including the Sunday package deliveries it offers on behalf of Amazon. The move is likely in response to complaints from competitors UPS and FedEx that USPS holds an unfair advantage in attracting package delivery business.
With the decline in traditional mail, USPS has targeted alternative markets to stay afloat, recently lowering rates on its Priority Mail service and spurring the complaint. While the Postal Service is allowed to offer competitive services, it is prevented from using its government monopoly to subsidize their use.
“Opportunities for unlawful cross-subsidization exist in a number of areas,” the letter says. “In fact, some of the Postal Service’s actions and public statements have heightened the Committee's concerns about cross-subsidization.”