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In a high-stakes legal battle, the owner of Royal Mail must now confront an £878.5 million ($1.1 billion) class action lawsuit brought on behalf of 290,000 retail businesses. The Competition Appeal Tribunal (CAT) has ruled that the case, alleging Royal Mail abused its dominant market position to overcharge bulk mail customers, can proceed to trial.
The lawsuit, spearheaded by Bulk Mail Ltd., represents businesses, charities, and local authorities that claim they were financially harmed by Royal Mail’s anticompetitive conduct.
A Monopoly Under Fire
According to Andrew Wanambwa of Lewis Silkin LLP, who represents Bulk Mail, “Royal Mail’s abuse of its market dominance resulted in excessive charges for bulk mail services, impacting thousands of small businesses and public sector organizations.”
Royal Mail, however, is standing firm. A company spokesperson dismissed the allegations, stating, “Royal Mail believes Bulk Mail Claim Ltd.’s claim is without merit, and we will defend it robustly.”
The Battle for Class Certification
On Monday, Paul Harris KC of Monckton Chambers, arguing for Bulk Mail, pressed the tribunal to grant a collective proceedings order. He emphasized that the claim has a “reasonable, plausible, and credible prospect” of proving that Royal Mail’s restrictions on competition led to inflated prices for bulk mail services.
