Following news the government will sell its remaining stake in Royal Mail (RMG) Ofcom has announced plans to review the regulatory rules which currently apply to the postal carrier. Since Whistl suspended door-to-door deliveries in London, Liverpool and Manchester, the watchdog has been concerned Royal Mail is operating in a competitive vacuum.
Ofcom set up a regulatory framework for Royal Mail in 2012 to make sure British consumers and businesses could use a universally priced, affordable postal service, six days a week. At the time, the framework included greater commercial freedom for Royal Mail to operate in what was considered a challenging market, but the watchdog is worried Royal Mail will start taking advantage of its monopoly status.
A full review could take a year to complete, but the results might include price controls across the wholesale and retail operations.
