Publishers demand lower prices from Swiss Post

 In a press release, the Swiss Press Association welcomes the parliament's decision on Thursday to maintain indirect press subsidies. However, it is critical of the fact that the federal contribution to Swiss Post will fall from CHF 80 million to CHF 30 million and that only small-circulation titles and the non-profit member press will benefit from the special subsidy. According to the Publishers Association, large-circulation titles can negotiate special conditions thanks to their market position. However, there is a risk that medium-sized press titles will have to foot the bill for the reduced subsidy amount. Swiss Post has repeatedly announced that it will make newspaper delivery more expensive if the contributions to indirect press subsidies are reduced. However, the association fears that further price increases would place an additional burden on the already strained financial situation of publishers and thus further exacerbate media concentration. Since the end of the 1990s, publishers have already had to bear around CHF 120 million in additional costs. If delivery were to become even more expensive, this could lead to a "cost increase that would threaten the existence" of many media companies.
Publishers therefore expect Swiss Post to take cost-cutting measures to compensate for a large part of the loss of federal subsidies. According to the association, the press contributes significantly to the capacity utilization of the postal network and to Swiss Post's good financial result. Postal rates should therefore be reduced and not increased again. The monopoly-protected dominance of Swiss Post in the area of newspaper delivery prevents alternative providers from being able to deliver newspapers nationwide. As the publishers' appeal goes on to say, this situation must not lead to Swiss Post simply being able to pass on its costs to the publishers. The publishers' association is therefore calling for rapid liberalization of the postal market