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ARTICLE · 24 AUGUST 2018

Ofcom Delivers Its Largest-Ever Competition Law Fine To Royal Mail

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Ofcom, the UK regulator of companies in the communications sector, has fined Royal Mail £50m for breaching competition law.

United KingdomAntitrust/Competition Law
Jamie Dunne
Jamie Dunne

Ofcom, the UK regulator of companies in the communications sector, has fined Royal Mail £50m for breaching competition law.

It is the largest fine ever issued by Ofcom in a competition case, though 'core' competition regulators such as the Competition and Markets Authority (CMA) and the European Commission routinely issue larger fines.

What did Royal Mail do?

Several companies have tried competing with Royal Mail in the market for business "bulk mail" (i.e. deliveries of letters sent by large business customers, such as bank statements or insurance documents). This type of mail now makes up the vast majority of all mail sent (with very few individuals sending letters these days). One such company, Whistl (previously known as TNT Post) entered the London market for delivery of this bulk mail in 2012, with plans to roll out its own network across much of the UK in competition with Royal Mail. It would subcontract delivery to Royal Mail in areas where it did not

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