Postal competition has created 'no significant benefits'.

The liberalisation of the UK postal service has produced "no significant benefits" for either households or small businesses, a report has said. That is the initial finding of an independent review of the UK postal sector commissioned by the government. It warned there was now a threat to the Royal Mail's financial stability. The Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail. View article here.

While the initial report said homes and small firms had not gained from the increased competition, it said large companies had "seen clear benefits from liberalisation - choice, lower prices and more assurance about the quality of the mail service".

There is still no significant competition in the delivery of letters, due perhaps to "significant barriers to entry." View The Guardian article here.

Think about why potential competitors are unwilling to challenge Royal mail in the area of household letter delivery. In spite of deregulation, what barriers to entry are still likely to exist?

Competition Report on supermarkets

Measures designed to curb the power of major supermarkets and improve choice for consumers have been announced by the Competition Commission. Recommended changes to the planning system will make it harder for one chain to dominate a local area. And a new independent ombudsman will resolve any disputes between suppliers and retailers. But supermarkets are arguing that consumers could end up paying the cost of running the ombudsman scheme. BBC News

(Measures in detail.)

"Although, in many areas, there is good choice and strong competition between retailers, there are also a significant number of local areas where larger grocery stores face limited competition and local shoppers lose out," the Competition Commission said.

Critics of Britain's major supermarkets reacted angrily today after the Competition Commission announced new rules to curb the power of the major supermarket chains. Small retailers and environmental and consumer groups are concerned that the rules are not tough enough and will do little to curb the dominance of the large food retailers.

Supermarkets critics angry at report.