Anti-competitive behaviour
Postcomm has wide-ranging powers to gather information and investigate complaints about anti-competitive behaviour in the mail market.
In practice, since Royal Mail is the dominant licensed operator in the postal sector – with a market share of more than 96% – it is most likely to be the focus of any investigation into anti-competitive behaviour.
Anti-competitive behaviour may involve the supply of services at prices or on terms that are unduly preferential, unduly discriminatory or unduly restrictive, or which are predatory or excessive. It may also involve obtaining an unfair commercial advantage over competitors, or refusing to supply access to postal facilities.
Postcomm can investigate Royal Mail for anti-competitive behaviour under Part 4 of the company’s licence, and if we find that anti-competitive behaviour has occurred, we can take a range of actions, including:
- Agreeing undertakings with Royal Mail to ensure it takes steps to resolve any situation where anti-competitive behaviour has arisen or could arise.
- Issuing a provisional or final enforcement order instructing the company to deal with an anti-competitive situation.
- Imposing a financial penalty on Royal Mail.
Allegations of anti-competitive behaviour against other operators would be likely to fall within the scope of UK competition law and may be referred by Postcomm to the Office of Fair Trading. A Memorandum of Understanding between Postcomm and the Office of Fair Trading (pdf, 42KB) aims to promote co-operation and co-ordination between Postcomm and the Office of Fair Trading when dealing with cases of anti-competitive behaviour for which they have overlapping powers. (More information on codes and policies governing Postcomm's work.)
In March 2007, Postcomm issued guidance to ensure that Royal Mail does not act anti-competitively when taking part in competitive tenders for mail business.
Postcomm's series of downloadable factsheets on key issues in the mail market includes a brief guide to our work dealing with anti-competitive behaviour.
