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Seminar question #2 Please consider the following scenario: Alpina is a mountainous EU Member State. The country's government asks postal providers to become (subsidized) universal
Seminar question #2 Please consider the following scenario: Alpina is a mountainous EU Member State. The country's government asks postal providers to become (subsidized) universal service provider for the remote region of Apolonia, where very few people live scattered over many small villages. The foreign parcel shippers "Corneos" and "UBF" politely decline, because they deem the proposed subsidy too low to operate in Apolonia. The previously State-ownedAlpinan postal provider "SnailMail" does accept the offer to become universal postal service provider for Apolonia from 2012 to 2022, when the universal service contract can be renewed. From 2014 onwards, the tourism industry in Apolonia grows exponentially, drawing large groups of visitors and leading to a general population increase. Snailmail sees its revenues in Apolonia increase significantly, and decides to allocate its profits to enter the parcel shipping market in the rest of the country and compete with Corneos and UBF. Snailmail decides to offer parcel shipping rates below marginal cost in order to attract customers. The European Commission opens an investigation because it suspects anticompetitive behavior of SnailMail. You are an attorney representing Snailmail. Consider the most optimal outcome of this competition law investigation for your client, and the legal reasoning leading to this outcome
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