Postcomm statement on High Court judgement

Commenting on the judgement handed down by the High Court, Postcomm is pleased that the Judge confirmed that Postcomm had decided reasonably and properly that a financial penalty should be ordered in this matter.

However, the regulator is disappointed that the GBP 1 million penalty was quashed because of a technical difficulty in its policy for calculating financial penalties in cases where the benefit to Royal Mail and the burden on others from the licence contravention cannot be assessed. The Judge held that Postcomm could not depart from its published penalty policy in the circumstances of this case.

Following its investigation, Postcomm originally imposed the penalty on Royal Mail in July 2006 for failing to take adequate steps to ensure it could not gain an unfair commercial advantage over its competitors in the ‘access’ market.

Postcomm found that Royal Mail had not put in place adequate measures within its wholesale and retail divisions to prevent it obtaining an unfair advantage over its competitors as stipulated in Condition 10 of its licence. Postcomm’s investigation also found a failure in Compliance. These findings were not challenged in the appeal brought by Royal Mail.

Postcomm will consider appealing the decision to the Court of Appeal.