Royal Mail’s owner is currently facing a massive £900m class action lawsuit for allegedly misusing its dominant position in the bulk mail market. The accusations include overcharging customers for services such as sending out bank statements and weekly magazines.
International Distributions Services (IDS) is at the center of this £878m claim, representing around 290,000 customers who claim they were affected by Royal Mail’s actions. Bulk mail, which is commonly used by businesses and organizations, includes a variety of items like utility bills, charity appeals, and magazines.
The lawsuit, initiated by Bulk Mail Claim Limited, argues that Royal Mail engaged in anti-competitive practices that limited competition and drove up prices for bulk mail services. This legal action coincides with EP Group’s attempt to acquire IDS for £3.57bn.
In 2018, Ofcom fined Royal Mail £50m for breaching competition laws in the bulk mail sector. Despite Royal Mail’s attempts to appeal, it still faces a separate £600m claim from Whistl, which is set to go to court next year.
Robin Aaronson from Bulk Mail Claim Ltd emphasized the importance of collective action to address the harm caused by Royal Mail’s actions. Andrew Wanambwa from Lewis Silkin, the legal firm representing the claimants, aims to secure compensation for affected customers.
Royal Mail has responded by stating that they believe the lawsuit is baseless and will vigorously defend against it. The case has been filed with the UK Competition Appeal Tribunal.
2024-06-20 10:41:42
Link from www.theguardian.com