Britain’s major mobile network operators — including Vodafone and BT-owned EE — are now facing a multi-billion-pound legal battle over allegations they overcharged customers, after the Competition Appeal Tribunal (CAT) ruled on Friday that a significant portion of the case can move forward.
The collective action, which also targets Telefonica’s O2 and Hutchison’s Three UK — whose $19 billion merger with Vodafone was approved last year — is valued at more than £3.2 billion ($4.29 billion).
In its ruling, the CAT dismissed the parts of the claim relating to losses before October 2015, saying they were filed too late. However, it approved claims for losses incurred after October 2015, allowing them to proceed to trial.
The lawsuit, led by consumer advocate Justin Gutmann, alleges that millions of customers were hit with a so-called “loyalty penalty,” being charged for mobile handsets that had already been fully paid off once their minimum contract terms ended.
Lawyers for the network providers argued the case is fundamentally flawed, insisting it accuses them of anti-competitive behaviour “in an industry renowned for its competitiveness”.
EE said it strongly disputes the key allegations and will defend itself vigorously, while O2 welcomed the tribunal’s decision to narrow the scope of the case.
