Ofcom retains price cap for UK second class mail until 2024
Ofcom, the UK regulator, decided to retain the price caps applied to Royal Mail’s second class post until March 2024. The current caps were due to expire in March 2019.Despite Royal Mail pricing consistently below the cap, the regulator rejected the operator’s arguments that there were sufficient competitive constraints, particularly from the threat of e-substitution, to justify a removal of the price cap.
An Post to increase prices for larger items and for international post
An Post, the Irish universal service provider, announced higher postage rates for larger items sent domestically and also for international post. The new prices will come into effect on 25 February 2019. There will be no increase in the standard domestic stamp price of €1.
No need for further regulation of parcels market but mails market needs to be reviewed in light of user needs
A study for the European Commission has concluded that the European e-commerce market is developing well, and that delivery performance for cross-border parcels has improved. As a result, there is no requirement for additional regulatory intervention. However, a new study will examine user needs in the postal sector and in particular whether the universal service, as currently defined in the Postal Service Directive, requires to be amended.
Court of Justice of the EU confirms annulment of UPS/TNT merger prohibition on due process grounds
The Commission should have let UPS make known its views on the final econometric model used in the decision.
Postal operators other than Royal Mail now liable to contribute to costs of consumer advocacy bodies
Ofcom has decided that a wider range of postal operators will have to contribute to the costs of UK’s consumer advocacy bodies (CABs). As from 1 April 2019, CABs’ costs will be recovered from operators delivering parcel services with a relevant turnover >£350m per year, and letters services with a relevant turnover >£10m per year.
Spanish regulator investigates Correos’ alleged breach of postal delivery conditions
The Spanish regulator started investigating Correos on the grounds of a possible breach of the postal delivery conditions. Correos presumably violated the postal law, as it delivered postal items to facilities other than the homes’ mailboxes, without having prior authorisation from the regulator. The latter will issue a final resolution after its investigation, which may take up to three months.