Royal Mail’s owner, International Distribution Services (IDS), is facing a class-action claim amounting to nearly £900 million (about $1.5 billion).
According to an article published by the United Kingdom’s Guardian, the claim alleges that IDS abused its dominant market position in handling bulk mail, which includes items like bank statements and weekly magazines. The £878-million action has been initiated by a newly established company representing approximately 290,000 customers, who allege they were overcharged due to Royal Mail’s market behaviour.
Bulk mail, often sent by retailers, utility companies, charities and publishers, encompasses various types of correspondence such as council tax statements, charity fundraising appeals, weekly magazines and energy bills. Bulk Mail Claim Limited, the company behind the lawsuit, argues that Royal Mail’s “anti-competitive” practices since 2014 have harmed businesses and organizations by preventing competition and inflating prices for the collection, sorting and delivery of bulk mail. The legal action coincides with the ongoing attempt by Czech energy tycoon Daniel Křetínský’s EP Group to acquire IDS in a £3.57-billion ($6.2-billion) deal.