- 21 May 2019
- Transport / Logistics Services
The US Supreme Court has refused to hear a competition case brought by parcel giant UPS to change how the USPS charges for delivering its packages.
The Court refused UPS’s requests to appeal a lower court ruling that upheld USPS pricing methods. It sought to force the postal operator to raise its prices, claiming that it has an unfair competitive advantage against its privately owned competitors.
“[P]ostal pricing has departed from Congress’s requirement that the Postal Service compete on a level playing field with private companies for package delivery,” UPS had argued to the Supreme Court.
There is a wider battle going on. On the one hand Amazon backed USPS case in the legal challenge as it uses USPS and stands to benefit from the current pricing model. On the other, arch corporate President Trump has signalled that it wants the postal operator to raise its prices. The Supreme Court is said to be conservative thanks to the amount of appointees made by conservative Presidents and should lean therefore towards private companies competing with the public sector so future attempts may succeed. It will be interesting to see how this finally pans out.