BT has successfully won a class action lawsuit amounting to £1.3 billion, which accused the company of overcharging millions of its customers.
BT has successfully defended itself against a £1.3 billion ($1.6 billion) class action lawsuit that claimed the telecommunications company overcharged millions of customers for fixed telephone services.
The litigation, which spanned eight weeks and commenced in January, involved allegations concerning approximately 3.7 million landline customers.
The case was spearheaded by former Ofcom official Justin Le Patourel, who contended that BT exploited its dominant market position to impose "excessive" charges on landline customers, many of whom were elderly. "We take our responsibilities to all of our customers very seriously and welcome today's ruling," BT stated in a concise announcement.
Le Patourel's allegations against BT pertained to the period from 2009 to 2017, during which claimants asserted that BT unjustly charged customers for standalone fixed voice (SFV) connections prior to intervention by the British telecommunications regulator, Ofcom. Had the ruling been unfavorable for BT, it could have resulted in compensation of up to £400 ($501) per customer. Following Ofcom's intervention, BT committed to reducing its prices in 2018; however, this did not prevent Le Patourel from initiating a class action lawsuit in 2021.
Ultimately, the Competition Appeal Tribunal ruled in favor of BT, acknowledging that the company had indeed charged excessive prices significantly and persistently, but concluded that this was not done in an unfair manner. The tribunal determined that BT had not misused its market position. “While I am pleased that the tribunal has recognized BT’s dominant position in the market, and the significant and persistent nature of its excessive pricing, I am disappointed that it did not agree that these prices were unfair,” Le Patourel remarked, indicating that he is contemplating a potential appeal. Le Patourel served at Ofcom from 2003 to 2016, during which he held several senior positions, including head of market intelligence and principal for consumer policy and protection.
BT successfully defended itself against a £1.3 billion class action overcharging lawsuit, with the Competition Appeal Tribunal ruling in its favor. Despite acknowledging excessive pricing, the tribunal found no abuse of market position. However, the plaintiff, Justin Le Patourel, may consider appealing the decision.
