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Ofcom will review Royal Mail ‘monopoly’


The Royal Mail is set for Ofcom investigation over claims of monopoly on national post service after Whistl withdraws from deliveries …reports Asian Lite News.


 post box royal mailThe withdrawal of Royal Mail’s only national rival, Whistl, has prompted an Ofcom review into whether the 499-year-old postal service has a monopoly on the national post market.

Media reports indicate that the move by Ofcom will re-examine the pricing structures Royal Mail has enjoyed since 2012, when rules were loosened on the understanding that Royal Mail would face increased competition for business.

It is reported that to protect customers from high prices  pricing rules could now be re-introduced. It needs to be seen  whether Royal Mail will have no desire or need to drop given the lack of competition.

In a statement Ofcom said: “The review will ensure regulation remains appropriate and sufficient to secure the universal postal service, given the recent withdrawal by Whistl from the ‘direct delivery’ letters market, which has resulted in Royal Mail no longer being subject to national competition.”

 Following news that the government will sell its remaining stake in Royal Mail, Ofcom has announced it plans to review the regulatory rules which currently apply to the postal carrier.  Since Whistl suspended door-to-door in London, Liverpool and Manchester, Ofcom is concerned Royal Mail is operating in a competition vacuum.