BT has successfully fended off a £1.3 billion ($1.6 billion) class action brought on behalf of three million landline customers, with the Competition Appeal Tribunal (CAT) ruling Thursday that while some prices were excessive, they were not unfair. This landmark decision marks the first substantive ruling under the U.K.’s collective proceedings regime.
Tribunal Rejects Abuse of Dominant Position Claim
The class action, led by representative Justin Le Patourel, accused BT of abusing its dominant market position by charging unfairly high prices to customers using Standalone Fixed Voice (SFV) services—landline-only or unbundled landline and broadband contracts.
However, the tribunal determined that BT’s pricing practices did not constitute an abuse under Section 18 of the Competition Act 1998.
“Overall, we considered that, whether taken by itself or in comparison with other prices, BT’s prices were not unfair, and therefore there was no abuse of dominant position,” the tribunal said in its judgment summary.
Pricing and Customer Loyalty Scrutinized
The claim, which sought hundreds of pounds in compensation per customer, argued that BT increased prices for landline-only users while offering discounts to those purchasing bundled packages. The claimants said BT exploited loyal customers, particularly the elderly, who they alleged were less sensitive to price changes.
