So they've been fighting tooth and nail to get that limit removed, which means that every single item gets slapped with additional brokerage fees and what-not, essentially rendering the purchases economically unsound (i.e a $1 item will cost close to $20).
They did the same in Sweden, and IIRC, the post offices ended up with storing hundreds of thousands of shipments that people refused to pick up, when they discovered the new fees.
Our unions have argued that it's good because
1) consumers get better consumer rights when purchasing from domestic retailers
2) shipping times are much lower
3) supports domestic economy - both e-commerce and postal services.
4) Better for climate, as less parcels = less transportation
But yeah, in the end, it's just one more link in the value-chain.