A £1.2 billion class action lawsuit accusing the owner of Royal Mail of abusing its dominant market position in bulk mail services has been granted permission to proceed to trial by UK competition authorities. The claim, led by Bulk Mail Claim Ltd on behalf of approximately 290,000 customers who allege they were overcharged, has been approved by the Competition Appeal Tribunal (CAT), which assessed factors including potential legal costs and the group’s ability to fund the case.
International Distribution Services (IDS), the parent company of Royal Mail, will now face a trial following the CAT’s issuance of a collective proceedings order. The lawsuit asserts that businesses and organizations, which purchase bulk mail services such as council tax and bank statements, charity fundraising appeals, weekly magazines, and energy bills, suffered losses because of Royal Mail’s anti-competitive practices.
The claim also emphasizes that Royal Mail’s exploitation of its dominant position resulted in higher prices for the collection, sorting, and delivery of bulk letters, affecting entities including local authorities, charities, and small businesses. Lewis Silkin law firm partners, who are representing Bulk Mail Claim Ltd, commented that the order for collective proceedings moves the case closer to securing compensation for those affected by Royal Mail’s abusive market behavior.
This lawsuit arrives alongside a £3.57 billion deal by Czech billionaire Daniel Křetínský’s EP Group to acquire IDS. In 2018, industry regulator Ofcom had already fined Royal Mail £50 million for breaking competition law by abusing its dominant position in bulk mail delivery, citing that such behavior denied postal users the benefits of effective competition.
Royal Mail has unsuccessfully attempted to appeal Ofcom’s decision and previously faced a £600 million claim from Whistl, a company that abandoned its rival postal service in 2015, resulting in 2,000 job losses. That claim was settled last month. Royal Mail representatives have expressed their belief that the current claim from Bulk Mail Claim Ltd lacks merit and vowed to robustly defend against it.
Source: https://www.theguardian.com/business/2025/mar/05/green-light-for-bulk-mail-claim-against-royal-mail-owner-to-go-to-trial
