Royal Mail fined record £50m from Ofcom

Getty Images

Ofcom has fined Royal Mail for a record £50m for the injury to the competition.

The punishment for his actions in the year 2014, if Whistl, what was then known as TNT, was to try, his first competitor in the wholesale E-mail delivery.

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

Whistl is said the damage, but the Royal Mail, it is the challenge of the order.

Ofcom, the investigation revealed that the Royal Mail price rises in 2014, is meant by wholesale customers such as Whistl wanted to compete with, it would have to pay higher prices, in other areas where Royal Mail is used for delivery.
“Deficient”

Ofcom, the investigation showed that Royal Mail was the actions on “anti-competitive discrimination of customers, such as Whistl, to deliver trying to bulk-mail”.

Jonathan Oxley, Ofcom competition director, said: “Royal Mail, who broke the law by abuse of its dominant position in the bulk mail delivery.

“All companies must play by the rules. Royal Mail’s behaviour was unacceptable, and postal user has denied the possible benefits that come from effective competition.”

Royal Mail said it was “very disappointed by the Ofcom decision to impose a financial penalty of £50m, Royal Mail attaches strongly resist any suggestion that it has acted in breach of the competition act, and is of the opinion that the decision is without merit and fundamentally flawed.”‘Damage’

He said the changes in the prices of goods on the protection of the universal service, which, in contrast to its competitors, it is necessary to continue the deployment.

The universal service, the postal service is charged means at the same rate, regardless of whether it is sent to remote rural areas or a road.

Royal Mail said Ofcom chief role was to prevent competitors from picking off the profitable, mostly urban, deliveries.

A spokesman for Whistl, said: “to check We have the Ofcom results in the detail and the degree of damage, we’re looking for, from the Royal Mail.

“The first advice is that Royal Mail may be of value for the considerable damage that was caused to Whistl business, in addition to the fines by Ofcom.”