UPS Charges USPS Illegally Subsidizes Shipping Services

If UPS has its way, it could cost more to ship a package through the U.S. Postal Service. The shipping giant is petitioning federal regulators to force the Postal Service to adjust the way it calculates its costs, arguing that the agency is using the proceeds from its monopoly First Class mail to subsidize the delivery of the shipping services where it competes with private carriers. UPS is alleging that in keeping competitive shipping prices artificially low, the Postal Service is violating the 2006 Postal Accountability and Enhancement Act (PAEA), which granted the agency more pricing freedoms, but barred it from using its monopoly in letter mailing to subsidize competitive shipping products.