LONDON (Reuters) - Royal Mail (LON:RMG) has been fined 50 million pounds for discriminating against Whistl, its only major competitor delivering letters, regulator Ofcom said on Tuesday.
Royal Mail changed wholesale customers' contracts in early 2014 when Whistl was set to become the first company to challenge its monopoly in the large-scale delivery of bulk mail. As a result, Whistl suspended plans to extend delivery services to new parts of the UK, Ofcom said.
"Royal Mail broke the law by abusing its dominant position in bulk mail delivery," said Jonathan Oxley, Ofcom's Competition Group Director.
"All companies must play by the rules. Royal Mail's behaviour was unacceptable, and it denied postal users the potential benefits that come from effective competition."
Royal Mail said it would appeal Ofcom's decision.
"Royal Mail strongly refutes any suggestion that it has acted in breach of the Competition Act, and considers that the decision is without merit and fundamentally flawed," it said.