The tribunal rejected these arguments, finding no evidence of exploitative behavior. It emphasized that SFV customers were not “captive” and faced no barriers to switching providers.
“The SFV customers were not captive; there were no barriers to them taking alternative options,” the judgment read.
The tribunal also dismissed claims that BT lacked transparency with customers, regulators, or the press, noting that customer loyalty to BT reflected the perceived value of its services.
Legal and Industry Impact
The case broke new legal ground as the first full opt-out trial under the U.K.’s collective proceedings framework. The CAT’s ruling considered what constituted a reasonable profit margin and applied a “competitive benchmark” to assess BT’s pricing.
The class action stemmed from a 2017 Ofcom review, which examined disparities in pricing between landline-only customers and those with bundled services. Claimants argued BT unfairly benefited from its legacy as a government-owned operator that inherited a substantial customer base.
