Royal Mail shares dip amid probe
Shares in Royal Mail fell sharply after its regulator confirmed the scope of a "fundamental review" into the firm's operations that could see it impose a cap on prices.
Ofcom said the inquiry will look at whether current regulation secures "the efficient and financially sustainable provision" of the country's universal postal service.
The universal service is the Royal Mail's commitment to make deliveries to all parts of the UK at a flat rate, six days a week. Shares in the firm slipped 3%.
The regulator, which first said it would look at this area last month, has become concerned at the weakening of competition in parts of the letters and parcels markets. The letter delivery service arm of Whistl and parcel firm City Link both folded within the last seven months.