£1.2 billion class action against Royal Mail on behalf of purchasers of bulk mail services
The Competition Appeal Tribunal (CAT) has ruled that a Collective Proceedings Order should be made in respect of the claim brought by Bulk Mail Claim Ltd (BMCL) against International Distribution Services Plc (Royal Mail).
Under the UK’s competition regime, a person wishing to bring a class action must first secure approval from the CAT. The CAT gave its approval today, which means that BMCL’s claim against Royal Mail can now proceed to trial.
The claim follows on from Ofcom’s finding in 2018 that Royal Mail engaged in conduct that affected competition in the market for the delivery of bulk mail and abused its dominant position, in breach of EU and UK law.
In summary, the claim alleges that Royal Mail’s anti-competitive behaviour had the effect of cutting off competition for bulk mail delivery services from 2014 onwards, with the result that senders of bulk mail (such as NHS Trusts, retailers, charities, local authorities, banks, utility companies, advertisers and publishers) were overcharged throughout this period.
The claim, brought on behalf of an estimated 290,000 bulk mail customers, seeks to achieve compensation for this overcharge.
All affected purchasers of bulk mail services will automatically be represented, and therefore do not need to take any steps to join the action. Class members can however choose to opt out if they wish.
Bulk Mail Claim Limited will be issuing a formal notice of the Collective Proceedings Order shortly.
Andrew Wanambwa, partner at Lewis Silkin representing Bulk Mail Claim Ltd, said: “Royal Mail’s abuse of its dominant position in the bulk mail market resulted in the overcharging of hundreds of thousands of bulk mail customers – including local authorities, charities and small businesses. The granting of a Collective Proceedings Order by the Tribunal means that this claim can now proceed to trial and we are one step closer to securing compensation for those affected.”
Further information about the claim can be found at www.bulkmailclaim.co.uk.
