Bpost Escapes Penalty in Belgian Newspaper Distribution Scandal

Overview of the Procurement Case

By Jakob Van Calster

Details of the Investigation

Feb 13 (Reuters) - Belgian postal operator Bpost and publishers DPG Media and Mediahuis have been held liable for rigging a public procurement for newspaper distribution, the Belgian competition watchdog said on Friday.

Impact on the Newspaper Industry

Bpost, which had alerted the authorities after an 2022 internal audit uncovered signs of malpractice, will receive full immunity from fines under a leniency programme, the regulator said. The investigation ultimately cost the postal group's then-CEO, Dirk Tirez, his job.

Fines Imposed on Other Companies

"The common objective of the companies in question was to ensure that bpost ... would be awarded the 2023-2027 newspaper distribution concession," the regulator said in a press release. "Together, they agreed that bpost’s competitor PPP would not submit an offer (which) left bpost as the only bidder."

Mediahuis and DPG Media, which between them control the widest‑circulating newspapers in the Benelux region, were fined 7.79 million euros ($9.36 million) and 3.79 million euros, respectively, reduced under the same leniency programme.

The concession was abandoned by the Belgian government after the investigation, forcing companies to negotiate commercial terms separately with bpost and PPP.

"This has caused the price of distribution services to increase sharply, with an enormous impact on the profitability of the written press in Belgium," Prosecutor General Damien Gerard told Reuters.

Two unnamed natural persons were also held liable and fined, whilst thirteen were granted immunity due to cooperation with the investigation.

Reuters has contacted Bpost, DPG Media and Mediahuis for comment.

($1 = 0.8430 euros)

(Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak)