Royal Mail owner International Distributions Services PLC (LSE:IDS) is facing a £878 million class action claim over allegations of abusing its dominant position in the bulk mail market.
The claim, initiated by Bulk Mail Claim Limited, represents approximately 290,000 customers who assert they were overcharged due to IDS's anti-competitive behaviour.
Bulk mail, commonly used by businesses and organizations, includes items like bank statements, weekly magazines, and energy bills.
The lawsuit alleges that since 2014, Royal Mail's actions have stifled competition and increased prices for bulk mail services.
This class action follows a £50 million fine imposed on Royal Mail by Ofcom in 2018 for similar conduct.
Ofcom found that Royal Mail's actions denied postal users the benefits of effective competition.
Royal Mail responded: "We confirm that we have received an application for a collective proceedings order from an entity called Bulk Mail Claim Ltd which we consider to be without merit and we will defend it robustly."