Adding to Royal Mail’s woes, the company has already exhausted all avenues to overturn Ofcom’s original ruling. After being slapped with a record £50 million fine in 2018, Royal Mail’s appeals were rejected at the CAT, the Court of Appeal, and finally, in 2022, when the UK Supreme Court refused to hear the case.
Regulatory Crackdown on Pricing Tactics
The dispute stems from Royal Mail’s attempt to modify its pricing structure for bulk mail services—essential for the delivery of vital documents such as utility bills, tax statements, and bank notifications. Whistl, the only real competitor at the time, argued that the move would have crushed its ability to operate, forcing it to scale back its delivery services. Amid backlash and regulatory scrutiny, Royal Mail abandoned the planned price changes before they could take effect.
Kenneth MacLean KC of One Essex Court, representing International Distribution Services, acknowledged that Royal Mail accepted Ofcom’s ruling regarding its abuse of market power. However, he maintained that the regulator never definitively concluded that increased competition would have led to lower costs for customers.
Legal Teams in the Arena
The claimants are represented by a formidable legal team, including Paul Harris KC, Ben Rayment, Will Perry, and Reuben Andrews of Monckton Chambers, along with Nicholas Bacon KC of 4 New Square, all instructed by Andrew Wanambwa of Lewis Silkin LLP.