The class action follows a damning 2018 ruling by Ofcom, the UK’s communications regulator, which found Royal Mail guilty of using its market power to sideline Whistl UK Ltd., its only major competitor in the bulk mail sector. Ofcom determined that Royal Mail’s actions undermined competition, harming businesses that relied on large-scale mail distribution for their operations.
Who’s Affected?
Bulk Mail Ltd. is acting on behalf of businesses and organizations that purchased bulk mail services between January 2014 and June 2022. Notably, 94.7% of those affected are small and midsized enterprises, many of which depend on affordable mail services to reach their customers.
The tribunal proceedings are expected to focus on the extent to which Royal Mail is bound by Ofcom’s findings, a key point of contention in the case.
A Pattern of Legal Challenges
This lawsuit isn’t Royal Mail’s first legal headache related to anticompetitive behavior. In February, the postal giant quietly settled a £600 million claim brought by Whistl, which had accused Royal Mail of similar market manipulation. The terms of that settlement remain undisclosed.
