An Post is facing legal action over the standard and quality of its postal delivery service.
The Communications Regulator ComReg has initiated the action, claiming An Post has fallen short of its service targets.
A brief statement on the ComReg website read: "The Commission for Communications Regulation yesterday notified An Post that it has initiated legal proceedings against An Post, the designated universal postal service provider in Ireland, in relation to its compliance with a direction in respect of
the quality of the universal postal service."
An Post said that it is "puzzled" by ComReg's decision, and disputed its figures.
"We are puzzled by the decision of the Regulator to pursue this course of action at a time when the company faces a series of challenges arising from the poor economic climate and falling mail volumes," an An Post statement read.
"Equally we are puzzled that ComReg has chosen this course after five years of steady and sustained improvement in mails quality as evidenced by the Regulator’s own figures, from the low 70s to the mid-80s.
"The reported gap in performance versus the ComReg target is not supported by An Post’s own performance data.
"An Post has repeatedly sought clarification and increased transparency with regard to the operation of the Regulator’s monitor (which measures a 30% portion of all mail) but ComReg has not provided this.
"An Post does not receive sufficient or timely information from the ComReg monitor to enable direct performance improvement, as is the norm in other countries."
The semi-state company also warned that legal action could damage the firm financially.
"We believe this course of legal action flies in the face of the company’s commitment to quality of service and could seriously damage the financial stability of An Post," the statement said.
An Post has said that it will "contest this action vigorously".