UK mail consolidation complaint referred to Postcomm
The super-complaint from postal watchdog Postwatch has been referred by the OFT to the industry regulatory body Postcomm.
The complaint, made on 18 March, related to Royal Mail’s Mailsort service. This provides a discount for businesses that carry out their own initial mail sorting for large volumes of mail. The complaint alleged that Royal Mail was abusing its dominant position in the market for delivering letters to favour its own mail consolidation business over its Mailsort service. The complaint focused on four main areas relating to Mailsort:
* Royal Mail’s right to vary terms and conditions at one month’s notice
* unduly onerous specifications which sorted mail must meet to avoid being rejected or incurring further costs
* advance payments based on estimated quantity of mail effectively resulting in users incurring penalties for incorrect estimates
* preferential terms for some customers and not others.
Following consultation with Postcomm the OFT has decided that the industry regulator is in a better position to investigate the matter further. Postcomm has indicated that the conditions of Royal Mail’s licence are sufficient to address the concerns raised in Postwatch’s complaint (if substantiated), and that it will investigate whether the matters raised in the complaint constitute a breach of Royal Mail’s licence.
The OFT may review its position in light of the outcome of Postcomm’s investigation if necessary.
NOTES
1. Postwatch made its super-complaint to the OFT on 18 March 2003. See Statements 2003.
2. Postcomm has a duty to consider any complaint made against Royal Mail under the Postal Services Act 2000.
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AFX UK FOCUS 16th April 2003
UK OFT REFERS MAIL CONSOLIDATION COMPLAINT AGAINST ROYAL MAIL TO POSTCOMM
LONDON (AFX) – The Office of Fair Trading said it has referred a complaint from Postwatch pertaining to Royal Mail’s Mailsort service to the industry regulatory body, Postcomm.
Royal Mail’s Mailsort service offers a discount for businesses that carry out their own initial mail sorting for large volumes of mail.
The complaint alleges that Royal Mail was abusing its dominant position in the market for delivering letters to favour its own mail consolidation business over its Mailsort service.
Following consultation with Postcomm, OFT decided that the industry regulator is in a better position to investigate the matter further.
