Mercedes has withdrawn its notice of intention to appeal against Nico Rosberg's post-race 10-second time penalty which dropped the German driver into third place in the British Grand Prix final classification.

Rosberg and Mercedes were judged to be guilty of breaking the new radio rules set by the FIA which ban any radio transmission which would act as 'aiding the driver'.

Mercedes confirmed it was cleared to speak to Rosberg to avoid a 'car-stopping gearbox failure' after suffering an issue in the closing stages of the British Grand Prix but have been penalised for telling the German driver how to avoid the problem - by double-shifting past seventh gear - which is against the new rules.

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The FIA race stewards, represented by Nigel Mansell, Tim Mayer, Nish Shetty and Dennis Carter, punished Rosberg with a post-race 10-second time penalty which dropped him behind Max Verstappen and into third place.

As a result, race winner Lewis Hamilton moves to just a point behind his Mercedes team-mate in the F1 drivers' championship.

Mercedes confirmed it has accepted the decision and penalty by dropping its intention to appeal but will begin talks with F1 bosses on the 'over-regulation of the sport', after the radio bans have continued to come under heavy criticism.

"The Mercedes AMG Petronas Formula One Team today decided to withdraw its notice of intention to appeal against the decision of the Stewards of the British Grand Prix," a statement from Mercedes read.

"We were able to prove to the Stewards that a car-stopping gearbox failure was imminent and, as such, were permitted within the rules to advise Nico of the required mode change.

"However, the advice to avoid seventh gear was considered to breach TD/016-16, and therefore Article 27.1 of the Sporting Regulations.

"The Team accepts the Stewards' interpretation of the regulation, their decision and the associated penalty.

"During the coming weeks, we will continue discussions with the relevant F1 stakeholders on the subject of the perceived over-regulation of the sport."