Royal Mail has lost an appeal against a £50m fine from media regulator Ofcom for anti-competitive behaviour against its largest competitor, the parcels business Whistl.
Confirmation of the fine came on the day that Royal Mail went to the high court in a legal bid to prevent strikes by postal workers in the run-up to Christmas. A verdict is expected on Wednesday.
Ofcom handed Royal Mail a £50m penalty in August last year after it said the delivery firm “abused its position” by “discriminating” against Whistl.
It said the firm had abused its dominant position by penalising wholesale customers that sought to deliver bulk mail such as bank statements and council tax demands door to door.
Royal Mail appealed against the decision but the Competition Appeal Tribunal upheld the decision on Tuesday, although the company could now launch a fresh appeal.
Speaking after the verdict, Ofcom said: “We found that Royal Mail pursued a deliberate strategy of pricing discrimination against Whistl, which was its only major competitor for delivering business mail.
“Royal Mail had a special responsibility to ensure its behaviour was not anti-competitive.
“We hope that our fine, which has been upheld in full by the tribunal, will ensure that Royal Mail and other powerful companies take their legal duties very seriously.”
Royal Mail said it was “disappointed by the decision.
“We are considering all legal options, including whether to seek permission to appeal and to request that payment of the penalty, which would otherwise become payable, be stayed pending any appeal. We will provide an update once we have completed our legal review.”
Separately, Royal Mail is waiting on a high court verdict after seeking an injunction against a planned strike by members of the Communication Workers Union (CWU).
The company has said that “potential irregularities” in the way that staff were balloted for strike action could render it unlawful.
Royal Mail said it was particularly concerned by the threat of disruption to postal voting before the election, as well as disruption to services in the run-up to Christmas. However, the CWU has yet to schedule strike dates.
CWU workers last month backed industrial action by 97% on a turnout of almost 76%.
The vote could lead to the first national postal strike in a decade. The union said Royal Mail had breached an agreement put forward last year that included plans to reduce the working week.
The CWU said it “completely rejects and denies” Royal Mail’s claim.
The Guardian has approached Royal Mail for comment.
