You can read 19 more articles this month
ROYAL Mail was slapped with a £50 million fine today for committing a “serious breach” of competition law.
Communications regulator Ofcom found that the company had abused its dominant position by discriminating against Whistl, its only major competitor for delivering letters.
The penalty follows an investigation into a complaint by Whistl, one of Royal Mail's wholesale customers, into changes that the former public service made to its wholesale customers’ contracts in 2014.
Under the new contracts, Royal Mail imposed price increases on wholesale customers such as Whistl that sought to compete with it by delivering letters in some parts of the country.
The higher prices were introduced in those remaining areas where Whistl used Royal Mail for delivery.
Following notification of these new prices, Whistl suspended plans to extend its delivery services to new parts of Britain.
The Ofcom investigation found that Royal Mail’s actions amounted to “anti-competitive discrimination against customers, such as Whistl, who sought to deliver bulk mail” and a “serious breach” of section 18 of the Competition Act.
Royal Mail vowed to appeal against Ofcom’s decision, claiming that its price changes were “never implemented or paid.”
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by joining the 501 club.
Just £5 a month gives you the opportunity to win one of 17 prizes, from £25 to the £501 jackpot.
By becoming a 501 Club member you are helping the Morning Star cover its printing, distribution and staff costs — help keep our paper thriving by joining!
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by become a member of the People’s Printing Press Society.
The Morning Star is a readers’ co-operative, which means you can become an owner of the paper too by buying shares in the society.
Shares are £1 each — though unlike capitalist firms, each shareholder has an equal say. Money from shares contributes directly to keep our paper thriving.
Some union branches have taken out shares of over £500 and individuals over £100.
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by donating to the Fighting Fund.
The Morning Star is unique, as a lone socialist voice in a sea of corporate media. We offer a platform for those who would otherwise never be listened to, coverage of stories that would otherwise be buried.
The rich don’t like us, and they don’t advertise with us, so we rely on you, our readers and friends. With a regular donation to our monthly Fighting Fund, we can continue to thumb our noses at the fat cats and tell truth to power.
Donate today and make a regular contribution.