CMA: Postal Franking Undertakings Released, Effective 2026

• The Competition and Markets Authority (CMA) released its postal franking machine undertakings on November 4, 2026.
• These undertakings, established under the Enterprise Act 2002, are no longer in force and have been removed from the register of remedies.
• They previously required franking machine suppliers Pitney Bowes and Neopost to control exclusivity, unbundle services, and provide ink cartridge information.
• Royal Mail was also mandated to not defer to manufacturers for third-party maintainer authorization and to publish details of authorized maintainers.
• The release removes these restrictions, potentially altering market dynamics for suppliers and service providers in the franking machine sector.

For legal professionals advising clients in this space, particularly those involved with franking machines, the cessation of these undertakings necessitates a thorough review of existing commercial agreements and compliance strategies.

The Competition and Markets Authority (CMA) has officially announced the release of its undertakings concerning the postal franking machine sector, effective November 4, 2026. This significant development means the previously imposed restrictions are no longer active and have been removed from the official register of remedies. The decision by the CMA to release these undertakings marks a notable shift in the regulatory landscape for companies operating within the UK's franking machine market.

These undertakings, which were initially established under the market investigations provisions of the Enterprise Act 2002, had placed specific obligations on key industry players. Notably, franking machine suppliers Pitney Bowes and Neopost were subject to requirements regarding exclusivity, the unbundling of services, and the provision of information concerning ink cartridges. Simultaneously, Royal Mail also faced specific mandates designed to foster competition in the maintenance sector.

The now-released undertakings stemmed from a market investigation conducted under the Enterprise Act 2002, a crucial piece of UK competition law. This legal framework empowers the CMA to address market failures and impose remedies to ensure fair competition. For Pitney Bowes and Neopost, the undertakings specifically mandated controls over exclusive arrangements, ensuring that customers were not unduly tied to a single supplier. They also required the unbundling of products and services, preventing suppliers from forcing customers to purchase bundled offerings. Furthermore, these suppliers were obliged to provide specific information about ink cartridges, likely aimed at facilitating third-party competition in consumables.

Beyond the suppliers, Royal Mail, as a central player in the postal system, was also bound by these undertakings. The authority required Royal Mail to refrain from deferring to manufacturers when authorizing third-party maintainers for franking machines. This was a critical measure intended to prevent manufacturers from having undue influence over who could service their machines, thereby promoting a more competitive maintenance market. Additionally, Royal Mail was compelled to publicly disclose details of all authorized third-party maintainers, enhancing transparency and accessibility for consumers seeking maintenance services.

The official release of these CMA postal franking undertakings is set to reshape the competitive dynamics within the UK franking machine sector. With the removal of these long-standing restrictions, suppliers like Pitney Bowes and Neopost are no longer legally bound by the requirements concerning exclusivity, unbundling, or the disclosure of ink cartridge information. This newfound freedom could lead to changes in their commercial strategies and product offerings, potentially impacting pricing and service models across the industry.

For legal professionals advising clients in this space, particularly those involved with franking machines, the cessation of these undertakings necessitates a thorough review of existing commercial agreements and compliance strategies. The previous regulatory environment, which dictated certain behaviors and disclosures, no longer applies. This could open avenues for new business models or, conversely, introduce new competitive pressures. The Royal Mail's obligations regarding third-party maintainers have also been lifted, which might alter the landscape for independent service providers and the transparency around their authorization.

Lawyers advising clients in the postal franking machine sector, including suppliers like Pitney Bowes and Neopost, or third-party maintainers, should note that the Competition and Markets Authority (CMA) has released the undertakings previously governing exclusivity, unbundling, and information sharing. This change removes prior restrictions, potentially altering market dynamics and requiring a review of existing commercial agreements or compliance strategies that were based on these now-defunct undertakings.

Source: Original reporting via GOV.UK guidance on franking machines.