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The owner of Royal Mail<\/a> is facing a near \u00a3900m class action claim over accusations it abused its \u201cdominant position\u201d in the market for sending out bulk mail, including bank statements and weekly magazines.<\/p>\n International Distributions Services (IDS) has been served with an \u00a3878m action by a newly formed company that said it represents an estimated 290,000 customers who claim they were overcharged as a result of Royal Mail\u2019s behaviour.<\/p>\n Bulk mail is typically sent by businesses and organisations including retailers, utility companies, charities and publishers. It includes council tax and bank statements, charity fundraising appeals, weekly magazines and energy bills.<\/p>\n The action, brought by Bulk Mail Claim Limited, argues that businesses and organisations that bought bulk mail services after 2014 suffered owing to \u201canti-competitive\u201d behaviour by Royal Mail. It argues that Royal Mail prevented competition, pushing up prices for the collection, sorting and delivery of letters in bulk.<\/p>\n The class action comes as the billionaire Czech energy tycoon Daniel K\u0159et\u00ednsk\u00fd\u2019s EP Group<\/a> attempts to buy IDS in a \u00a33.57bn deal<\/a>.<\/p>\n In 2018, the industry regulator, Ofcom, fined Royal Mail \u00a350m after it found the company \u201cbroke the law by abusing its dominant position in bulk mail delivery\u201d. Ofcom said \u201cRoyal Mail\u2019s behaviour was unacceptable and it denied postal users the potential benefits that come from effective competition\u201d.<\/p>\n Royal Mail has unsuccessfully attempted to appeal<\/a> against Ofcom\u2019s decision. It faces a \u00a3600m claim, separate from the class action, brought by Whistl, which scaled back its operations in 2015 with the loss of 2,000 jobs<\/a>. That case is expected to reach the high court next year.<\/p>\n Robin Aaronson of Bulk Mail Claim Ltd said: \u201cWhere there has been an abuse of dominant position, as has occurred in this case, it is important that those suffering loss are able to obtain redress.<\/p>\n \u201cA collective claim is the only fair and efficient form of redress in this case, given that there are hundreds of thousands of affected customers and it would be commercially unviable for them to bring individual proceedings.\u201d<\/p>\n Andrew Wanambwa, a partner at Lewis Silkin, the law firm aiding the claimants, said: \u201cRoyal Mail abused its dominant position, resulting in hundreds of thousands of bulk mail customers being overcharged. The purpose of this claim is to hold Royal Mail accountable for its actions and secure compensation for affected customers.\u201d<\/p>\n