Royal Mail fined record?50m by Ofcom" width="976" height="549">
Ofcom has fined Royal Mail a record
Ofcom's investigation found that Royal Mail's actions amounted to "anti-competitive discrimination against customers, such as Whistl, who sought to deliver bulk mail".Jonathan Oxley, Ofcom's competition director, said: "Royal Mail broke the law by abusing its dominant position in bulk mail delivery."All companies must play by the rules. Royal Mail's behaviour was unacceptable, and it denied postal users the potential benefits that come from effective competition."Royal Mail said it was "very disappointed by Ofcom's decision to impose a fine of ?50m, Royal Mail strongly refutes any suggestion that it has acted in breach of the Competition Act, and considers that the decision is without merit and fundamentally flawed."
It said the price changes were designed to protect the Universal Service, which, unlike its competitors, it is required to continue providing. The Universal Service means post is charged at the same rate, regardless of whether it is sent to remote rural areas or to a busy city street.Royal Mail said Ofcom's chief role was to prevent rivals from picking off the profitable, usually urban, deliveries. A spokesperson for Whistl said: "We have to review the Ofcom findings in detail and establish the level of damages we can seek from Royal Mail. "Initial advice is that Royal Mail is potentially liable to pay compensation for the significant damage that was caused to Whistl's business, in addition to the fine imposed by Ofcom."
Royal Mail
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