Royal Mail response to Ofcom statement

[idpickering]

Royal Mail (RMG.L) will appeal Ofcom's decision taken under its Competition Act powers which was announced today. The decision relates to a price change announced in 2014 - which was never implemented or paid - under Royal Mail's Access1 Letters Contract.

The infringement decision relates to an Access price differential (see below) which was announced in January 2014, automatically suspended about four weeks later, before it was due to enter into effect at the end of March 2014. The announced price change had been robustly stress tested by Royal Mail under competition law and the relevant regulatory framework. It was designed to support the sustainability of the Universal Service from "cherry picking"2 end-to-end letters delivery and the general decline in mail volumes.

https://www.investegate.co.uk/royal-mai ... 13317160X/

[Itsallaguess]

Royal Mail (RMG.L) will appeal Ofcom's decision taken under its Competition Act powers which was announced today. The decision relates to a price change announced in 2014 - which was never implemented or paid - under Royal Mail's Access1 Letters Contract.

The infringement decision relates to an Access price differential (see below) which was announced in January 2014, automatically suspended about four weeks later, before it was due to enter into effect at the end of March 2014. The announced price change had been robustly stress tested by Royal Mail under competition law and the relevant regulatory framework. It was designed to support the sustainability of the Universal Service from "cherry picking"2 end-to-end letters delivery and the general decline in mail volumes.

https://www.investegate.co.uk/royal-mai ... 13317160X/

Some more about this from the BBC here -

Ofcom has fined Royal Mail a record £50m for breaching competition law.

The fine is for its actions in 2014 when Whistl, which was then known as TNT, was trying to become its first competitor in wholesale mail delivery.

The regulator's investigation, which followed a complaint by Whistl, said Royal Mail had abused its dominant market position and discriminated against the company.

Whistl is seeking damages, but Royal Mail said it will challenge the fine.

https://www.bbc.co.uk/news/business-45180222

Cheers,

Itsallaguess

[idpickering]

Thanks for your input Itsallaguess.

Ian.