October 09, 2014: Further to its announcement of 16 July 2014, Royal Mail plc announces that it has today entered into a settlement agreement with the French competition authority (Autorité de la Concurrence) in respect of the alleged breaches of antitrust laws by one of its subsidiaries, GLS France, during the period before the end of 2010.
Royal Mail confirms that, whilst a settlement has been agreed in principle, the French regulator is continuing its investigation. By agreeing to settle and provide compliance commitments now, Royal Mail will benefit from a reduction to any fine.
The amount of any fine is not expected to be determined until the second half of the 2015-16 financial year. However, Royal Mail has made a financial provision of £18 million in its financial statements for the half year ended 28 September 2014, comprising £12 million in respect of the current estimate of any fine and £6 million in respect of estimated legal costs associated with the investigation and the costs of the compliance commitments.