Ofcom concerned Royal Mail could unfairly subsidise its parcels operation via its letters business


 

Ofcom is concerned that Royal Mail could potentially cross-subsidise its parcels operation through its letters business, as its market share and delivery network is much more established in the latter. The strength of its operation in the letters sector could give the carrier an unfair advantage in the parcels market, and Ofcom said it will “closely monitor whether Royal Mail is appropriately allocating its costs between parcels and letters”. The comments appeared in a report on Ofcom’s review into the postal […]