The European Commission said yesterday it was putting Deutsche Post, Europe's biggest post office, under investigation for allegedly trying to monopolise the delivery of mail-order parcels in Germany. In a statement, the Commission - which enforces EU competition laws - said it also wanted the Bonn-based postal service to explain why Germans "pay the highest postage in Europe".

Brussels' action follows complaints made as far back as 1994 by United Parcel Service of the United States and smaller carriers alleging that Deutsche Post was pricing its parcel delivery services below cost, the Commission said. Deutsche Post denied it had violated competition rules and said an inquiry would not set back its proposed flotation in November.