The postal market in the Netherlands is under serious pressure. Declining mail volumes, rising costs, labor shortages, and digitization are making it increasingly challenging to fulfill the universal service obligation (USO)—the statutory requirement to deliver mail nationwide—reliably and affordably. PostNL, which is responsible for this task, has for some time failed to meet the 95% next-day delivery standard. The Dutch government aims to modernize the postal market, making it less reliant on physical mail, with more room for competition, and maintaining a continued focus on accessibility and reliability.
PostNL Sues the State Over Expected Losses
PostNL has now initiated preliminary legal proceedings against the State, demanding an advance payment to cover anticipated delivery losses. CEO Pim Berendsen argues that the government’s proposal to extend delivery time from 24 to 48 hours is insufficient to resolve the financial crisis. PostNL claims it needs €68 million to maintain service levels, but the government refuses to provide subsidies. If volumes continue to decline, delivery times may be further extended to 72 hours by 2028, as is already common in several European countries.
Outdated Dutch Postal Legislation
An analysis by the Netherlands Authority for Consumers and Markets (ACM) confirms that the current legal framework, based on the 2009 Postal Act, is no longer realistic. Since then, mail volumes have decreased by more than 50%, while labor costs have increased significantly. In practice, user preferences are also shifting: speed is becoming less important than reliability. Over 75% of users find two-day delivery acceptable as long as reliability remains high.
The government now wants to modernize the Postal Act. It proposes gradually extending delivery standards from D+1 (24 hours) to D+2 (48 hours), and eventually to D+3 (72 hours) by 2029. Priority mail, such as medical or bereavement mail, would still be delivered within 24 hours. These steps align with practices already adopted in Germany, France, and the UK.
ACM Recommends Greater Market Access
The ACM outlines two strategies to boost market dynamics. The first is to maintain access for regional postal operators to PostNL’s network. These regional providers rely on network access to serve their customers and could take on a greater share of delivery in the long term through innovative business models. The appropriate access rate must still be determined and could follow a “retail-minus” pricing structure, based on PostNL’s retail rates minus cost savings from third-party access.
A second option is to lower regulatory barriers for market entry. This includes removing the 80% direct employment requirement for delivery workers and eliminating PostNL’s VAT exemption outside the USO to create a level playing field.
Guaranteeing Delivery Reliability
The government continues to emphasize delivery reliability. The 95% performance standard remains intact, but with stricter rules on monitoring and transparency. PostNL will be required to report monthly on its delivery performance, both national averages and regional problem areas.
Additionally, a new cap on profit margins will be introduced. This will ensure that PostNL’s returns remain reasonable while avoiding unnecessary rate hikes. This reform replaces the current complex price control system, enabling more efficient operations. Ensuring affordability for both consumers and businesses remains a key priority.
The proposed amendments to the Postal Act provide the foundation for these reforms, enabling flexible responses to future developments, such as further digitization or the emergence of new players in the delivery market, including parcel carriers and regional networks that could eventually assume parts of the USO.
A Regional Alternative
Postal delivery in the Netherlands could be significantly cheaper and more efficient if regional postal companies are involved. A study commissioned by Business Post suggests that PostNL currently handles only about 5% of all letters under the USO. A coalition of regional postal operators has now presented a bold alternative to make the postal market more affordable, reliable, and future-proof.
The core proposal: a national network of collaborating regional delivery companies, including PostNL, with one dedicated postal worker per neighborhood. This would ensure efficient coverage of 97% of the country. The plan includes two delivery days per week. Services such as next-day delivery, packages, and direct mail would be removed from the UPD, as other carriers already provide them. This would create space for competition, more transparent pricing, and better quality for consumers and businesses.
The model is driven by regional companies, many with social enterprise roots, employing 4,500 workers with a distance to the labor market. Around 70% of mail would be handled locally, with only the remainder going to a central sorting center, thus reducing unnecessary transport and lowering costs.
Each region would have a designated concession holder overseen by the ACM, responsible not just for delivery but also for collecting mail from drop boxes and handling regional sorting. A single national stamp would fund both the regional networks and central sorting. The transition is expected to take 3 to 5 years. The initiators urge lawmakers to enshrine this model in the revised Postal Act so that the country is no longer dependent on a single dominant player.
Time for Political Clarity
What’s needed now is political clarity. The Hague must choose: continue subsidizing an outdated monopoly or enable a smart, market-oriented postal system in which both new and existing players can collaborate to build a modern, affordable, and sustainable service. The choice is political, but time is running out. The postal sector deserves future-proof legislation that looks beyond the status quo.
Walther Ploos van Amstel.