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Switzerland: The Role of Swiss Post in Indirect Press Subsidies

Author

Listed:
  • Alfred Hugentobler
  • Christian Jaag

Abstract

The Swiss press is comparatively small and divided into four regional language regions. The press currently benefits from two forms of subsidy: First, selected press products are subsidised indirectly by means of discounted postal transport prices, and second, a reduced value added tax rate is applied to certain printed matter. This article examines the first form of subsidy and the role of Swiss Post in greater detail. Specifically, it discusses the subsidisation in the context of postal regulation. When a new Postal Act came into effect in 2012, it also reformed the indirect press subsidy scheme. While the scope of the subsidy has not changed significantly, Swiss Post?s role as an intermediary in the subsidisation is now much clearer and the subsidy per press title is determined by a simple and transparent allocation mechanism. However, some regulatory inconsistencies still remain.

Suggested Citation

  • Alfred Hugentobler & Christian Jaag, 2014. "Switzerland: The Role of Swiss Post in Indirect Press Subsidies," Working Papers 0044, Swiss Economics.
    • Handle: RePEc:chc:wpaper:0044
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    File URL: http://www.swiss-economics.ch/RePEc/files/0044HugentoblerJaag.pdf
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    References listed on IDEAS

    as
    1. Jaag Christian, 2011. "What is an Unfair Burden? Compensating the Net Cost of Universal Service Provision," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-32, September.
    2. Christian Jaag, 2007. "Liberalization of the Swiss Letter Market and the Viability of Universal Service Obligations," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(III), pages 261-282, September.
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    Cited by:

    1. Christian Jaag & Martin Maegli, 2015. "Market Regulations and USO in the Revised Swiss Postal Act: Provisions and Authorities," Topics in Regulatory Economics and Policy, in: Michael A. Crew & Timothy J. Brennan (ed.), Postal and Delivery Innovation in the Digital Economy, edition 127, pages 301-311, Springer.

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    More about this item

    Keywords

    Press Subsidies;

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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