The regulation of Royal Mail is to be reviewed by OFCOM after the withdrawal of rival Whistl from the direct delivery letters market.

The communications watchdog’s review “will assess Royal Mail’s efficiency; consider its performance in the parcels market; and assess the company’s potential ability to set wholesale prices in a way that might harm competition”

It will also look at whether retail and wholesale prices are affordable for customers and will cover the costs of running a universal service.

Whistl said last week it was pulling out of the direct delivery market putting 1,800 jobs at risk.

OFCOM will outline its initial thoughts and begin seeking formal submissions from industry, consumer groups and other stakeholders in July.

The review is expected to be completed, and a revised regulatory framework put in place, during 2016.


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