The
Competition Appeal Tribunal (CAT) has upheld Ofcom's 2018 decision fining Royal
Mail GBP 50 million for abuse of dominance through discrimination against postal
operators that competed with Royal Mail in bulk delivery.
The
CAT rejected Royal Mail’s arguments that the case raised novel issues for the
application of Article 102(c) TFEU in relation to prices that were not paid or
charged.
The
CAT further rejected submissions from Royal Mail that Ofcom erred in law in
concluding that transactions entered into by Royal Mail and its customers were
equivalent in material respects and that the price differential could not be
objectively justified.
Royal
Mail also failed in its argument that the conduct was objectively justified by
reference to the need to preserve the viability of the universal service under
economically acceptable conditions.
The
decision of the CAT was unanimous and illustrates the hurdles that need to be
overcome in successfully appealing a decision of a specialist economic
regulator.
The
Royal Mail plc v Office of Communications [2019] CAT 27
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