BT wins £1.3bn class action lawsuit that alleged overcharging
BT has successfully defended itself against a £1.3 billion ($1.6 billion) class action lawsuit claiming it overcharged millions of its landline customers. Despite the ruling, the case’s plaintiff, Justin Le Patourel, has not ruled out an appeal.
The Details Behind the £1.3 Billion Lawsuit
What Was the Case About?
The class action lawsuit accused BT of overcharging approximately 3.7 million customers for standalone fixed voice (SFV) telephone services between 2009 and 2017. Many of these customers were elderly, relying on landlines as their primary means of communication.
Former Ofcom official Justin Le Patourel, who led the case, alleged that BT abused its dominant position in the market by charging “excessive” prices during this period.
Timeline of the Dispute
- 2009-2017: Claimants argued that BT’s SFV prices were significantly higher than necessary.
- 2018: After an investigation by Ofcom, BT agreed to reduce its prices for standalone voice services.
- 2021: The class action lawsuit was filed by Le Patourel.
- 2024: The Competition Appeal Tribunal ruled in BT’s favor after an eight-week trial beginning in January.
The Tribunal’s Verdict: Why BT Won
The Competition Appeal Tribunal delivered its decision last week in a detailed 301-page document. While the tribunal recognized BT’s dominant position in the market and its persistent overcharging practices, it ruled that these actions were not “unfair” under competition law.
BT released a statement welcoming the decision:
“We take our responsibilities to all of our customers very seriously and welcome today’s ruling.”
Key Findings of the Tribunal
- Dominant Market Position: The tribunal confirmed BT’s significant influence in the SFV market.
- Excessive Pricing: It acknowledged that BT charged prices that were significantly higher than necessary.
- Fairness: Despite overcharging, the tribunal concluded that BT had not acted unfairly or abused its market position.
Reaction from Justin Le Patourel
Justin Le Patourel expressed mixed feelings about the ruling. While he appreciated the tribunal’s acknowledgment of BT’s excessive pricing and market dominance, he was disappointed by the decision not to classify these actions as unfair.
“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,” said Le Patourel.
He is now considering a potential appeal.
Impact on Customers and the Industry
What Was at Stake?
If the case had been decided against BT, affected customers could have received up to £400 ($501) each in compensation. This would have set a precedent for holding telecom companies accountable for pricing practices.
Implications for BT
The verdict spares BT from financial repercussions that could have reached £1.3 billion. However, the acknowledgment of excessive pricing could affect its reputation, particularly among customers who felt disadvantaged by past practices.
Related Searches and Questions
Frequently Asked Questions (FAQs)
1. What was the BT class action lawsuit about?
The lawsuit alleged that BT overcharged around 3.7 million landline customers between 2009 and 2017 by abusing its dominant market position.
2. Who filed the lawsuit against BT?
The case was led by Justin Le Patourel, a former Ofcom official, on behalf of affected customers.
3. What was the outcome of the lawsuit?
The Competition Appeal Tribunal ruled in BT’s favor, concluding that while BT charged excessive prices, it did not act unfairly or abuse its market dominance.
4. Can the verdict be appealed?
Yes, Justin Le Patourel is considering filing an appeal against the tribunal’s decision.
5. How much compensation could customers have received?
If BT had lost the case, affected customers might have been eligible for up to £400 ($501) each.
