Royal Mail receives £50m fine

The Royal Mail has been fined a record £50m by Ofcom for breaching competition law.

The fine relates to actions Royal Mail took in 2014 when Whistl, which was then known as TNT, was trying to become its first competitor in wholesale mail delivery.

Ofcom declared that Royal Mail had abused its dominant market position and discriminated against Whistl.

The investigation found that Royal Mail price rises in 2014 meant wholesale customers such as Whistl that wanted to compete would end up paying higher prices in those areas where it used Royal Mail for delivery.

The regulator has decided that Royal Mail's actions amounted to "anti-competitive discrimination against customers, such as Whistl, who sought to deliver bulk mail."

Whistl is seeking damages, but Royal Mail has said it will challenge the fine.