E.C. Checks Royal Mail For Possible Illegal State Aid

Law360, New York (February 22, 2007, 12:00 AM EST) -- European Union regulators will investigate whether Britain delivers government loans on illegally favorable terms to its postal service, Royal Mail PLC, after postal rivals alleged that the state-owned company was receiving unfair subsidies.

Established in 1516 by King Henry VIII, for around 350 years Royal Mail the only player in the letter delivery service industry in Great Britain. In 2006, PostComm entered the market 15 months earlier than planned and put an end to the monopoly.

Royal Mail is currently saddled with a crippling pension scheme....
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