UK Royal Mail likely to avoid big fine over complaint

The prospect of Royal Mail paying a hefty fine for anti-competitive behaviour receded yesterday after the Office of Fair Trading decided not to investigate a “super complaint” brought against the operator by Postwatch, the consumer watchdog, last month.

The OFT referred the complaint to Postcomm, the regulator, meaning the issues raised “no longer have the status of a super-complaint”, Royal Mail said. Under the Enterprise Act, yet to come into full force, Postcomm is not empowered to deal with the complaint in such a way.

Postwatch submitted a complaint to the OFT last month, saying Royal Mail was “abusing its dominant position in the market” for the delivery of letters by preferring its own mail consolidation business with respect to bulk mail contracts.

Such a complaint, which relates to the operation of a market, allows fast-tracking. The OFT had 90 days to decide whether to investigate on behalf of many of Royal Mail’s large customers. Postcomm said it would investigate the complaint fully. Royal Mail said Post-watch’s complaint was unfounded and could not be justified.

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